After almost six years since the hack, Cryptopia begins to return 225 million dollars in cryptocurrencies to the affected users, marking an important step forward in the liquidation process.
Let’s see all the details in this article.
A long-awaited return: Cryptopia begins distributions from the hack to its users
December 20, 2024, marks a historic date for the over 10,000 verified account holders of Cryptopia, the New Zealand cryptocurrency exchange that declared bankruptcy after a devastating hacking in 2019.
The liquidation company Grant Thornton has announced the start of distributions, returning at least 225 million dollars in cryptocurrencies to the affected users.
This initiative represents a significant turning point in the long and complex liquidation process that followed the hacking, finally offering compensation to those who suffered significant losses due to the incident.
In the last two days, verified users holding Bitcoin (BTC) and Dogecoin (DOGE) have started to receive their cryptocurrencies.
The distribution, valued at approximately 400 milioni di dollari New Zealand dollars, is the result of years of work by Grant Thornton to recover and consolidate the remaining assets of the exchange.
The decision to start with BTC and DOGE was strategic, given the popularity and volume of these cryptocurrencies among Cryptopia users.
However, the liquidator has confirmed that further distributions will follow involving other coins present on the platform.
Grant Thornton has stated that, after this initial distribution, further phases will follow in accordance with the approved process. This includes the notice of deadlines for requests, before proceeding with the distribution of the remaining funds to eligible users.
The liquidator also emphasized the possibility of an additional distribution that could allow account holders to recover up to 100% of their holdings
This would be made possible by using the “unclaimed holdings” from users who have not registered on the complaints portal within the established deadlines.
Grant Thornton has therefore urged all remaining Cryptopia users to register on the portal
of the claims and complete the necessary steps to become eligible for future distributions.
A turbulent past: from the rise to the fall
Founded in 2014, Cryptopia was one of the first cryptocurrency exchange platforms in New Zealand, reaching a peak of 1.4 million registered users in 2018.
The exchange was known for offering a wide range of altcoins and for being a pioneer in the issuance of stablecoins in the country, launching the NZed (NZDT) in May 2017.
However, in January 2019, Cryptopia was the victim of a massive hacking that led to the loss of about 16 million dollars in various digital assets.
The incident highlighted the vulnerabilities of exchange platforms and raised questions about the security of cryptocurrencies.
Following the hacking, the exchange entered voluntary liquidation and Grant Thornton was appointed as the official liquidator.
In May 2019, the company declared that Cryptopia had a debt of 4.2 million dollars to creditors, thus initiating a long process of recovery and distribution of the remaining assets.
In other words, the return of funds to Cryptopia users represents an emblematic case in the cryptocurrency industry.
It indeed highlights the importance of security in exchange platforms and the need for stronger regulations to protect investors.
Furthermore, the success in the recovery and distribution of funds by Grant Thornton could set a positive precedent for future cases of hacking or failure of exchange.
As it demonstrates that, despite the challenges, it is possible for the liquidators to work effectively to safeguard the interests of the users.
A look to the future
As the cryptocurrency community continues to evolve, events like Cryptopia highlight the need for greater transparency and security.
Users are encouraged to perform due diligence when choosing exchange platforms and to consider using personal wallets to store their digital assets.
In the meantime, Grant Thornton continues its commitment to return as much as possible to the affected users. The company has reiterated its dedication to completing the liquidation process in a fair and efficient manner.
