The liquidators of the defunct cryptocurrency exchange Cryptopia have started distributing funds to users affected by a hack that occurred nearly six years ago. Grant Thornton, the firm overseeing Cryptopia’s liquidation, announced on December 20 that more than 10,000 verified account holders have begun receiving payouts.
Over the past two days, verified holders of Bitcoin (BTC) and Dogecoin (DOGE) were distributed cryptocurrencies worth at least 400 million New Zealand dollars (\$225 million), marking a significant milestone in the liquidation process. The distributions come three years after Grant Thornton launched the Cryptopia claims portal in 2020.
Grant Thornton has confirmed plans for additional distributions. Liquidators will continue the approved process, which includes setting cut-off dates for claims before distributing remaining assets, including BTC, DOGE, and other cryptocurrencies.
“There may be an additional top-up distribution to account holders, allowing them to receive up to 100% of their holdings using ‘unclaimed holdings’ from those account holders who have not registered in the claims portal after the cut-off dates,” Grant Thornton stated.
Remaining Cryptopia account holders are encouraged to register on the claims portal and complete the required steps to become eligible for future distributions. Further payouts for newly verified users are planned for early 2025, the liquidator added.
Founded in 2014, Cryptopia was one of the first international cryptocurrency exchanges based in New Zealand. At its peak in 2018, the platform had 1.4 million registered users and was the largest crypto exchange in the country. It also issued New Zealand’s first stablecoin, NZDT, in 2017.
In January 2019, Cryptopia was hacked, resulting in the loss of approximately \$16 million in various cryptocurrencies. Subsequent investigations revealed that the exchange owed \$4.2 million to its creditors. Grant Thornton has managed the liquidation process since May 2019.
This initial distribution signals progress in restoring funds to Cryptopia’s affected users. However, the liquidators emphasize the importance of all account holders registering on the claims portal to ensure eligibility for future distributions. With additional payouts planned and the potential for top-up distributions, the process aims to return as much value as possible to verified users.