Bankrupt Cryptopia Starts Distributing $225M to Impacted Users

The long-awaited recompense for victims of the 2019 Cryptopia attack is now being given. Funds for confirmed users affected by the security incident have begun to be distributed by Grant Thornton, the liquidator overseeing the now-defunct Bitcoin exchange. Millions of digital assets were stolen as a result of the breach, which happened over six years ago.

Over $225 Million Already Distributed

In the last two days, over $225 million, equivalent to 400 million New Zealand dollars, has been disbursed. More than 10,000 verified account holders with Bitcoin and Dogecoin holdings have received payouts. This milestone represents significant progress in a process that began with the launch of the Cryptopia claims portal in 2020.

Grant Thornton has confirmed plans for additional distributions. Account holders who have not yet registered on the claims portal are urged to do so to qualify for future payouts. The liquidators also indicated the possibility of “top-up” payments, potentially enabling users to recover up to 100% of their account holdings. Unclaimed funds from users who fail to register by specific deadlines will contribute to these additional payments.

Cryptopia, founded in 2014, was once New Zealand’s largest cryptocurrency exchange, boasting 1.4 million users at its peak. The platform gained recognition for introducing the NZed (NZDT), a stablecoin backed by the New Zealand dollar, in 2017.

The issues with the exchange started in January 2019 when hackers took over $16 million worth of cryptocurrencies. Later that year, Cryptopia went into liquidation as a result of the breach, leaving $4.2 million owed to creditors.

Thousands of customers are still waiting for their part, even if the recent reimbursements give many victims hope. More disbursements are expected in the upcoming months as the liquidation process continues. People who haven’t confirmed their claims yet are urged to take quick action to get paid.

For those impacted, the most recent events represent a turning point, offering long-overdue respite and a route to closure in one of the biggest and oldest exchange failures in the history of the cryptocurrency sector.