After the platform of crypto-exchange Cryptopia has begun its liquidation, last year, the company and its users fought for the right of property of crypto-currencies. A debate in which users have finally been successful.
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The crypto-currencies are of the individual properties
Last Wednesday, the judge Gendall in the High Court of Christchurch, New Zealand, has rendered a judgement on the case Cryptopia in which he classified the crypto-currencies in the category of properties.
This decision implies that the users of the platform have full right over their funds. As to Cryptopia, it is your duty to return the assets of its customers.
“I came to the conclusion that crypto-currencies here located in the site of exchange of Cryptopia is a species of personal property, intangible and clearly a thing of value in the minds. The argument that crypto-currency is a mere information and is therefore not a property is simplistic and, in my opinion, it is inappropriate in the current context. I reject it, ” declared judge Gendall in this historic judgement.
According to the estimates of the liquidators, Cryptopia currently owns crypto-currencies, with a value of approximately $ 101 million. This sum should be shared out between more than 800 000 users, as well as the 37 creditors and 90 shareholders of the crypto-stock exchange, which have also requested to be reimbursed.
(1/2) Today, 8 April 2020, Justice Gendall delivered his judgement, finding firstly, cryptocurrencies are “property” within the definition outlined in s2 of the Companies Act 1993 and secondly, that account holders’ cryptocurrency were held on multiple trusts, separated by …
— Cryptopia Exchange (@Cryptopia_NZ) April 8, 2020
A judgment copy
For your information, this is the first time that a court of New Zealand is confronted with a dispute related to crypto-currencies, which is an enriching experience for the sector as well as for the case law.
Now, any company operating under this authority and which might be facing the same problem will take as a reference the verdict statement to the case of Cryptopia.
But while the court in new zealand requires the platform the restitution of assets of its clients, it is still unclear how and when she thinks she has to distribute those funds.
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