Cryptopia: Court orders exchange to pay $274,408 to Phoenix NAP for regaining control over customers’ data

Cryptopia, the now-defunct New Zealand-based cryptocurrency exchange, released an update for its customers on 27 May 2019. Along with the update, the exchange also released a copy of the United States Bankruptcy Court of New York approving the firm’s “emergency motion for provisional relief.” Notably, David Ian Ruscoe from Grant Thornton was appointed as the foreign representative of Cryptopia’s liquidation process by the New York Bankruptcy Court.

The court also released a statement pertaining to the exchange’s relations with Phoenix NAP, LLC, a global IT service provider. The service provider has control of around $110-$130 million worth of cryptocurrencies that belong to the exchange’s customers. For returning the digital assets back to the exchange, Phoenix demanded a payment of around $1.9 million, post terminating the service agreement.

As security for this temporary restraining order, the Foreign Representative shall pay Phoenix NAP, LLC the sum of $274,408.92 for services for the months of May and June 2019. Such sum shall be paid on or before 5:00 PM, May 31, 2019. This court shall retain jurisdiction to hear and determine all matters arising from or related to interpretation or implementation of this order.”