Cryptopia liquidators distribute $225M to over 10,000 verified users, marking progress in the 2019 hack recovery.
Future Cryptopia payouts planned, with unclaimed funds possibly topping up users to recover 100% of their holdings.
Affected users must register on Cryptopia's claims portal to qualify for upcoming asset distributions in the New Year.
The liquidators of the bankrupt Cryptocurrency exchange Cryptopia have begun distributing $ 225 million to customers affected by the 2019 hack. Grant Thornton, the liquidation firm, said over 10,000 verified users are eligible for the payments. These distributions come after almost six years of legal and financial proceedings. This includes the Bitcoin (BTC) and Dogecoin (DOGE) as part of the compensation for the 2019 hack.
First Round of Payouts Completed
The first distribution was completed in the past two days. Some of the hacked Bitcoin and Dogecoin balances were returned to the affected users. This is a significant development in the liquidation process, which started in 2020 when the Cryptopia claims portal was created. Verified account holders were able to register and submit claims to receive their funds.
Furthermore, Grant Thornton confirmed that more payouts will follow. The liquidators will continue processing and distributing funds in accordance with the approved plan. A top-up distribution could allow users to receive up to 100% of their holdings. This will depend on unclaimed funds from users who have not registered on the claims portal.
More Distributions Planned for the Future
Following this first round, the liquidation team will continue to distribute remaining assets. The firm has plans for other distributions in the following months. Any user who has not registered on the claims portal should do so to enable future claim payouts. Grant Thornton emphasized that new distributions will be made in the New Year for newly verified users.
The liquidation process is complicated but has reached a critical stage with these payouts. Cryptopia lost over $16 million in multiple cryptocurrencies due to 2019 hacking incidents. This led to the further deterioration of the exchange’s finances leading to its failure. However, Grant Thornton has worked to recover as much as possible. The company has also been pursuing regulatory approvals to ensure a proper distribution process.
The goal has always been to return as much of the lost funds as possible to the affected users. With more distributions planned, users are encouraged to keep up with the process to reclaim their assets. The liquidators are focused on ensuring a fair and transparent process to close out the bankruptcy proceedings.
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