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Cryptopia Liquidators Return $225M to Hack Victims

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Cryptopia Liquidators Return $225M to Hack Victims 3
  • Cryptopia liquidators return $225M to over 10,000 hack victims.
  • Bitcoin and Dogecoin payouts lead the way in Cryptopia’s recovery.
  • More distributions planned for newly verified users in early 2024.

After years of effort to resolve the financial impact of its infamous hack, Cryptopia has compensated many of its affected users. The liquidators, Grant Thornton, have confirmed that more than $225 million has been distributed to victims of the 2019 breach.

Cryptopia Liquidators Distribute $225M to Hack Victims

Over 10,000 verified account holders have received payouts, primarily in Bitcoin (BTC) and Dogecoin (DOGE). The liquidators returned the assets on-chain after completing a comprehensive verification process that included validating user claims and reconciling asset records over several years.

These distributions were made  in the form of Bitcoin (BTC) and Dogecoins (DOGE). The liquidators, Grant Thornton, have confirmed that the assets were returned on-chain following a comprehensive process to verify users and validate assets over the last few years.

In January 2019 Cryptopia, New Zealand’s largest cryptocurrency exchange, was hacked and nearly $16m worth of digital assets were stolen. At the time of the hack, the exchange had over 1.4 million registered users. After the hack, the exchange filed for bankruptcy and Grant Thornton was appointed as the liquidator.

Major Bitcoin and Dogecoin payouts in Cryptopia liquidation process

The recent payouts have marked a significant phase in Cryptopia’s liquidation process. Cryptopia account holders who were affected by the January 2019 hack have now received compensation for their lost assets with a total of over $400 million NZD paid to users..

The liquidation process involved a detailed reconciliation of millions of transactions and the rebuilding of records of the hacked exchange. The exchange owed $4.2 million to creditors at the time of its closure. These steps were important to ensure that the assets were distributed fairly and in the correct amounts.

Further distributions planned for new verified users in 2024

After the initial distributions, Grant Thornton has announced plans for more payments to newly verified account holders. Therefore, liquidators will continue to process claims and verify additional users in the coming months. The liquidator, Grant Thornton, launched the Cryptopia claims portal in 2020 to enable the verification of affected users. Additionally, Thornton will continue with further distributions that are scheduled for 2024.

The liquidators are also planning on a second round distribution for users who have not yet registered. These users will have the opportunity to claim up to 100% of their holdings once they complete the necessary steps and meet the registration deadlines.