An Update On The Cryptopia situation

  1. XTRABYTES
    Well-Known Member Staff Member
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    May 17, 2019 at 12:05
    Disclaimer - I do not hold any legal authority to make any claims or otherwise within this notice. This is strictly a notice to the XTRABYTES community relating to our interpretations of the Cryptopia situation and to inform you of what we are doing with regard to this present situation.

    The management group has been monitoring and discussing the situation for the last couple days and among the public discussions a few members have posted links that have been helpful.

    One such link was for the Cryptopia Terms (found here) and another regarding the insolvency process in New Zealand, as seen here: https://www.insolvency.govt.nz/owed-money/the-claims-process/owed-by-company-in-liquidation/

    At this time we have not sought any type of legal advice, but will follow along and take whatever steps necessary to abide by the law or to challenge the process (within our capabilities) and fight to have our coins returned. We have, however, contacted the liquidators through email and received their automated, blanket reply. So, for now, the wallets will remain frozen until a court forces them open or until we can redistribute the XBY to their rightful owners.

    With that said, we hold a small amount of hope for everyone’s losses, through what we have been able to interpret within these 2 pieces of information. Please note that we do not wish to impose any false hopes - this is strictly a general opinion in these matters.

    So, here is how we interpret the situation:

    1. We are not owed money by Cryptopia in the sense of normal business practices. For example: we are not their ISP, electric company, or bottled water supplier. These are the normal types of debts that insolvency takes care of. There is no contract that says that Cryptopia owes us anything regarding any type of debt.

    This is different… they have our coins - our property.

    2. What we read in the Cryptopia Terms is that our coins are held in trust, which may indicate that we still have legal ownership of these coins.

    Section 5: Your Coin Balances

    d. Your Coin Balances are operated by us, and represent entries in your name on the general ledger of ownership of Coins maintained and held by us. This means the Coins in your deposit wallets may be pooled in our internal accounts with other Users' Coins at any time.

    e. Each User's entry in the general ledger of ownership of Coins is held by us, on trust, for that User.

    They state that they can pool our coins but in reality this is not possible because they do not have the capability to hold several different types of coins in one wallet.

    Therefore, all the XBY coins are indeed pooled together, but not with other projects. These XBY pools are likely all contained in the wallets that we have frozen. Therefore, these “may be” our collective coins (we need to see how the law will interpret this situation, because there probably aren’t any laws written specifically for crypto currency hacking situations - so we may have taken a wise step by locking our collective wallets). Again, time will tell - hopefully we get them back.

    Frozen Cryptopia addresses we identified, along with their balances:

    BNYwbyiPmxR2wk4LMktmMVitQPYQEH5CQq // 95,500,000.00000000
    BGeb4VYLv7ZJBCggsi1rX7pjTHAg28a87T // 42,367,510.00000000
    B9dndc5TSVuP99qVKGCMZ8E9Zyy3iGa3Sj // 30,100.00000000
    BLNrKtv9RjrMFinA4bvPUMKGTJUt4PZv6q // 25,000.00000000
    B4fersmcFvvPpZ5dNEkjKEVDJoP39K4sHP // 3.00000000 (tests)
    B6pDdaB2b511GvLNiAbB4hZJYyLdVmXkPc // 0.00000000
    BCbcmqzyxtFRj4TJHempbvT9pCnc8dMNH3 // 0.00000000
    BKrtTFaEFVtKVUETxKpYNcLLAP1k2vojSz // 0.00000000
    B5Vs5waErtRa7xg8ci7bYDxALEc1PrTzQA // 0.00000000
    BAQxhqeSEtoNqsL4zNShQ6X1xGxhGqaDCz // 0.00000000
    BML6V1Hh65wmElajPhpXU8VPuonQtxbChW - no results.

    This is a total of nearly 138 million XBY - which is extremely sad for everyone affected. Unfortunately, at this time we really have no other choice except to wait and see. As difficult as this is, there is nothing more that can be done until these legal doors are opened or shut by those who are in control. We do not know how a court of law may interpret this situation and as such it’s best not to speculate and drive ourselves crazy with scenarios.

    Let’s all just hope for the best and prepare for the worst.

    Thank you,

    The XTRABYTES Team
     
    Last edited: May 17, 2019