The New Zealand based cryptocurrency exchange platform Cryptopia is facing huge hits from the blockchain industry. The company filed bankruptcy protection in the US. Cryptopia has partnered with an Arizona based company to store the database.
Cryptopia entrusted this Arizona Company and kept its database with it. But now a dispute has raised between both the companies and the later one demanded Crytopia to pay $2 million in the form of compensation.
The fact that must be noticed here is Cryptopia doesn’t have that much of funds in order to settle this dispute. The funds that the company has with it now should be used for refunding its customers. The liquidator from Cryptopia said that this SQL database is very crucial for them.
If they have the database, they will be able to refund the amount to the customers with ease. This database consists of contact information, portfolios, and transaction histories of customers. Without them, the refunding process is impossible- according to the company.
The refunding to customers would have taken at least two months if all the things were set, but with this dispute, this refunding procedure may take some months to years. Most probably years because American courts are well known for delaying judgments in these kinds of issues.
The delay is beneficial for the Arizona based company because longer the dispute continues the greater chance they have to get $2 million in the form of compensation. The company has made it sure that it will return the database in legal procedure, and any pressures aren’t going to affect it.