Quote from: pornluver on May 17, 2019, 05:55:04 AM

Quote from: figmentofmyass on May 16, 2019, 11:46:23 PM

Quote from: pornluver on May 16, 2019, 09:57:40 PM

Say I gamble 1 million dollar. If I lost I declare bankcruptcy. If I win I make 1 million dollar.

Can people do that?

i'm pretty sure you can't. not easily, anyway. this article discusses why:

Quote

In short, if it can be shown that you obtained the loan for the money under false pretenses-- lied in some fashion in the process of incurring the debt-- you cannot discharge it. Chapter 7 does not allow you to deliberately cheat someone and use bankruptcy to avoid repaying credit extended to you in good faith (including by a casino) and which you only received because you lied about your ability or intention to repay. It stands to reason: that if you could not be denied a bankruptcy discharge for this reason, bankruptcy would become a license to commit fraud--lie to get credit, then file bankruptcy when it is time to repay.

Quote from: pornluver on May 16, 2019, 09:57:40 PM

Is this what cryptopia is trying to pull?

maybe, maybe not. we'll never know for sure.

my personal opinion is they were spread too thin already, they weren't profitable after the hack, and they didn't feel confident they could ever recover or repay their customers. in theory, depending on their financial condition, this may have been the most responsible thing to do.

cross-posting this from another thread re the legal implications:

Quote from: xtraelv on May 15, 2019, 11:58:01 PM

Appointment of liquidators shows the situation is not good but it also does not mean that it necessarily over.

Liquidators have special powers under New Zealand law - investigative, ability to compel creditors and shareholders to accept a resolution, restructure and cancel contracts like a lease.
http://www.lawsociety.org.nz/lawtalk/lawtalk-archives/issue-880/an-introduction-to-liquidations

They also have the power to continue trading if it is the best solution forward.

Where is that other thread? Cryptopia lost only 10% of their assets. I think they made a mistake of taking bitcoins and litecoin rather than the stolen assets. Now they have huge imbalance of assets.

So you mean to say that cryptopia only lost 10% of their asset and balance 90% they have used it and now they are declaring bankruptcy in the name of getting hacked and lost lot. Then it means that cryptopia exchange have scammed the exchange users funds and now declaring bankruptcy and enjoying the hacked funds.