AML Compliance Issues Of Cryptopia Unveiled To Court
Liquidators from Grant Thornton filed evidence stating that their inquiry to date proposed Cryptopia did not match its legal requirements while setting up accounts for new customers.
What The Liquidators' Affidavit Cited
The liquidators, Malcolm Moore and David Ruscoe's affidavit, cited they have carefully considered the limited personal identification information as according to them, it raises concerns which included AML compliance.
David Ruscoe stated in a report that he was cooperating with the Department of Internal Affairs and New Zealand Police regarding AML compliance of Cryptopia. Beyond an email address and a username, liquidators have lacked information of about 933,000 active user accounts.
About 100 customers who desired to trade as far as $500,000, were obliged to send their identification proof, a statement describing the source of their wealth and a photo while holding the id proof. Cryptopia confirmed their address with the help of Google Maps.
Over 44,000 early customers had no trading limits and were not verified. These customers were holding about $23 million.
Several Users Of Cryptopia From USA, Russia And Many Other Countries
Internet location addressees revealed that majority of 2.2 million users were from Russia, the United States, India, Britain, Netherlands, Germany, Canada, Brazil, South Korea and Japan. About 9475 users were from New Zealand. Thousands of accounts which held over $3 million came from uninhabited tropical islands near Australia.
On Tuesday, a four-day hearing in the Christchurch High Court was about to begin to ascertain the remaining crypto-assets property which was reported to having about $250 million worth, to give back to the traders.
The report of the second liquidator told they had $7 million on hand to finance the liquidation, after gathering $5 million from the account of a third-party trust and turning hundreds of Bitcoin to New Zealand dollars. Unsecured creditor claimed a total of about $3 million. In December, last year, they had spent nearly $700,000 on legal fees.