Cryptopia is basically a New-Zealand based Crypto Exchange which has filed for Bankruptcy protection in the US. 

Professional Services company Grant Thornton, which is also the Cryptopia's assigned liquidator declared that it had taken some steps on Monday to protect Cryptopia data stored and hosted on Servers with an Arizona based firm.

The exchange has registered a petition in the bankruptcy court in the Southern District of New York seeking recognition of New Zealand liquidation and has also applied for instant interim relief. 

Grant Thornton stated:

“The interim order preserves the Cryptopia data, which includes a SQL database containing all account holders’ individual holdings of cryptocurrencies and the account holder contact details. Without this information, reconciling individual holdings with the currencies held by Cryptopia will be impossible.”

The entire process of recovering the data and then deciding how to make proper distributions will take some time at least, the liquidator stated. 

As per a Bloomberg report, the liquidators are trying to find out which account holders hold own which digital assets, however, there is one major issue, which is that the information is stored on the servers run by an Arizona firm which is canceling its agreement with Cryptopia. The firm is also seeking $2 million in compensation.

In January, the hacking of the Cryptopia made headlines due to a huge attack took $16 million from the exchange. The exchange was the host of 300,000 accounts worldwide, despite the platform was established as a hobby in 2014. Bitcoin's hype in 2017 has supported the company a lot, as per the court's documents which were filed in Manhattan on Friday.

The theft mainly consists of client assets, and Cryptopia has already reported about the Cybercrime. Later in March, the exchange appeared to have already handled the problems, enabling account holders to access the trading platform again for exchanging their assets. Later, shareholders started facing a lot of issues, due to which they decided to close the company.

Grant Thornton was anticipated to file an initial report on the case last week on the New Zealand Companies Office Website. However, the New Zealand court allowed a 10-day working extension and report will end on June 4, CryptoAPI stated last week.