Cryptopia applies for US bankruptcy relief to protect users' digital assets; could take months to access holdings

Cryptocurrency exchange Cryptopia has applied for interim relief with the bankruptcy court in the Southern District of New York so that it can keep users' accounts active on servers in Arizona, its liquidator Grant Thornton wrote. The New Zealand-based company is also seeking recognition for liquidation in the US.

The interim order will allow Cryptopia to preserve a database which contains “all account holders’ individual holdings of cryptocurrencies and the account holder contact details.” The information is reportedly needed so that users can get their crpyto holdings back.

According to the liquidator, it will take months for customers to get their tokens back.

“We understand that this delay will be frustrating for account holders. For that reason, we are working to resolve these issues as soon as reasonably practicable,” Grant Thornton wrote.