In a press release published on Aug. 21, Cryptopia’s liquidator claims to “have made good progress towards securing and preserving Cryptopia crypto-asset holdings for the benefit of those entitled to them.” Per the release, there are two reasons why determining the holdings of the exchange’s clients is taking so long.

Professional services firm Grant Thornton claims that it is progressing in securing and preserving the cryptocurrencies of hacked cryptocurrency exchange Cryptopia.

The firm explains that customers did not have individual wallets and their funds were pooled together, as the exchange kept details of customer holdings in its database. As a consequence of this design, it is purportedly impossible to determine individual ownership using only wallet keys.

Furthermore, according to Grant Thornton, no detailed reconciliation process between the customer holdings database and the crypto assets held in the wallets has ever been completed, which the company hopes would reveal individual user holdings. The company also claims that the process is already well underway, explaining:

“We are working to reconcile the accounts of over 900,000 customers, many holding multiple crypto-assets, millions of transactions and over 400 different crypto-assets. These must be reconciled one-by-one. ”

Hacked asset recovery

Lastly, the firm notes that it is still determining whether it can recover the crypto assets lost during the hack which affected the exchange in January 2019. The announcement further states that the complex situation requires cooperation from third parties.

As Cointelegraph reported at the end of May, Grant Thornton had released an estimation statement of the financial state of the firm, reporting that the hacked exchange owes a total of $4.22 million to its creditors.

Customs Agents Seize Crypto Mining Units Smuggled out of Mongolia

The Federal Customs Service of the Russian Federation stopped the illegal import of four crypto mining devices from Mongolia into Russia.

Crypto mining equipment confiscated

On Oct. 1 Coinspot reported that a Mongolian citizen was trying to smuggle the four mining devices with fans and connected microcircuits across the Russian/Mongolian border into Russian territory.

The custom services explained that the smuggler was detained by Altai customs officers during a border check in the rural locality Tashanta. The detainee couldn’t provide any legal documents for the crypto mining equipment, which was then confiscated by the authorities.

Criminals rarely use crypto to withdraw stolen money

Cointelegraph reported in June that Artem Sychev, the first deputy director of the Information Security Department of the Bank of Russia, said that fraudsters rarely use cryptocurrency to withdraw stolen money.

The country’s central bank stated that criminals prefer to cash out stolen money rather than withdraw it with digital currency. Sychev said:

“In the Russian Federation, this withdrawing of stolen funds with crypto is used very rarely. Yes, sometimes cryptocurrencies are used to withdraw funds, but now it is not widespread, because it is much easier for an attacker to get cash.”

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