Cryptopia lawyers planning to retrospectively enforce KYC? How is this even legal?!

The ongoing situation at Cryptopia may be going from bad to worse for anyone who didn't verify their account with passport and proof of address.  If comments in the Bulwark (BWK) discord from one of their community managers are to be believed, Cryptopia lawyers are intending to draw a line between verified and non-verified customers.  Verified customers (minority) may be made whole, while unverified customers (majority) may be shit out of luck.

Since verification was, to the best of my knowledge, only ever optional, the vast majority of users would likely be stripped of their coins under this scenario. I'm no lawyer, but instinctively this seems wrong on so many levels. However, it's probably a convenient way for the liquidators to fill a financial black hole.

In other related news, Bitcoin Green masternodes are voting on whether to blacklist their Cryptopia wallet.