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: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.
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:
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.