Submitted to Reddit 18th May, 2019
Original Post: Cryptopia Coin Lock Up Governance Proposal
Posted by: u/CryptoBlockchainTech
“Cryptopia is shutting down because of the hack that took place mid-January. From 14 to 17 January, $16 million worth of cryptocurrency was stolen from the exchange. Following a police investigation that took months, Cryptopia finally reopened again mid-April, but it appeared to be only for one month.
On Tuesday, Cryptopia’s website went offline because of ‘maintenance’, but as some users already expected, the exchange wasn’t going to reopen again. On Wednesday, a statement of Cryptopia said that David Ruscoe and Russell More from Grant Thornton have been appointed as liquidators of Cryptopia and that trading is suspended.
The statement said: ‘The highly publicized hack of Cryptopia’s exchange in January 2019 had a severe impact on the company’s trade. Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was in the best interests of customers, staff and other stakeholders.’
At this moment a lot is still unclear, and the liquidators haven’t communicated yet on what will happen with the user funds. All that they said was that ‘we realise Cryptopia’s customers will want to have this matter resolved as soon as possible.’
The big question now is: are the funds that were not taken during the hack still in possession of the exchange? Or is this an exit scam? In the case of the latter, it will be near impossible for users to retrieve their funds.
In case the funds are still on the exchange, the easiest way for Cryptopia would be to allow users to withdrawal their assets from the exchange. But then there are still the liquidators and other creditors/large stakeholders that need to be paid first, leaving not much for the traders.
So the question now is: how much is still left, who gets what, and what will remain for the traders.”
Official ANON Trust Fund Wallet
This proposal would start in motion the research and development process to both identify and lock up all ANON coins in Cryptopia wallets. If this proposal passes the next Superblock at height 56,940 will be used to fund development to have a deployment solution ready once a decision is made public by the liquidators whether the Cryptopia customers holding ANON will be able to withdraw ALL of their coins. If the liquidators decide to proceed to liquidate their customer’s holdings (in full or partial) to pay the creditors then the ANON team will initiate the lockup sequence to prevent the designated Cryptopia wallet coins from being moved. These coins will stay under lock up until another Masternode Proposal is voted on to determine their final outcome.
This a break glass moment that will define our currency based on how we act and perhaps all of Crypto for a very long time. This is not the first hack of an exchange and unfortunately it will not be the last. It is now more important than ever that we show ALL exchanges that Crypto is different than a normal currency in that the community controls it, not any single government or any one single person. We will not sit back and allow almost 1/3 of the current ANON circulating supply to be confiscated by un-rightful owners that due to the negligence of the exchange it was hacked. We are not asking for hacked currencies back, we are asking for currencies that were not hacked to be returned to their rightful owners.
It is hoped that if the Cryptopia coins are locked up the ANON community and development team will be able to come up with a method to return the coins to their rightful Cryptopia customers. An example of how this could work is all Cryptopia customers have the right to ask for their account records. This information could be used to provide proof of ownership and assets.
This proposal is meant to send a clear message both to the community and the liquidators of Crytopia in hopes others will follow suit and take the same action and prevent Cryptopia customers who were not hacked from losing ANY of their currencies. If the liquidators do not heed our message and move forward with the liquidation of customer coins we will be prepared to protect our community. We are not wanting to set a precedence here and lock up any coins. However we do want to set a precedence that in Crypto the people are first not banks or governments.
In the world of government controlled assets, creditors are always the first in line when a liquidation occurs. However we maintain that in the Crypto world of assets the community is the first inline to be paid. Hence the cliche: Not your keys, not your Crypto.
The views and opinions expressed in any and all proposals are solely those of the respective author(s) and do not necessarily reflect the position of any other community member, the ANON community as a whole, ANON as an entity, or any ANON representative or team member. Assumptions made in the proposals are not reflective of the position of any entity other than the author(s) – and, since we are critically-thinking human beings, these views are always subject to change, revision, and rethinking at any time. ANON and its team members and representatives take the position of impartiality towards any and all proposals made.