Cryptopia Liquidator Say Hacked Crypto Exchange Flouted AML Laws | BTCMANAGER
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Evidence presented by liquidators from accounting behemoth Grant Thornton suggests that New Zealand crypto exchange Cryptopia failed to comply with anti-money laundering (AML) regulations before suffering a hack back in January 2019.
Cryptopia Had Zero KYC/AML Compliance Pre-hack
According to NZ Herald, liquidators from accounting giant Grant Thorton have filed new evidence to a Christchurch High Court indicating that the cryptocurrency exchange platform Cryptopia allegedly did not comply with all legal requirements when setting up trading accounts for new customers.
David Ruscoe, a liquidator from the accounting firm reportedly told local news outlet RNZ Business that he is currently working with the New Zealand Police Department and the Department of Internal Affairs in on-going investigations about Cryptopia’s compliance of AML regulations.
In an affidavit presented to the court, Cryptopia liquidator’s remarked:
“We have given careful consideration to the limited personal identification information available because, in our view, it raises various issues including anti-money laundering compliance.”
According to the liquidators, the crypto exchange has so far been unable to provide detailed information for some 933,000 active user accounts. Also, Cryptopia allegedly did not place trading limits on over 44,000 early user accounts believed to hold $23 million in cryptocurrencies.
Furthermore, only 9475 of Cryptopia’s 2.2 million customers were based in New Zealand.