Legal experts: investors in exchanges such as Gatecoin have a bleak prospect of recovering crypto assets

The Gatecoin exchange was ordered to close last month, ending six years of turbulent business, including $21.4 million in customer assets lost in hacking in May 2016, and was shut down by nine banks in Hong Kong. Bankruptcy and legal experts say that given the nature of the cryptocurrency stored on the exchange and the fact that virtual asset transactions remain unregulated, the victim (Hong Kong residents account for 40% of Gatecoin customers) will face long and challenging liquidation The process is bleak in terms of restoring encrypted assets.