Nikolas Sargeant
The defunct New Zealand cryptocurrency exchange Cryptopia has started refunding millions in digital assets to its users, years after its collapse due to devastating cyberattacks. The exchange filed for liquidation in 2019 after hackers stole $15.5 million worth of cryptocurrency.
The situation worsened in 2021 when a former Cryptopia employee exploited the platform’s vulnerabilities to steal an additional $170,000 in digital assets. Despite these challenges, the exchange’s liquidators, Grant Thornton, have now repaid 10,000 verified account holders with approximately NZ$400 million (USD $224.9 million) in cryptocurrency.
According to a public advisory, users holding Bitcoin and Dogecoin were among the first to receive their distributed funds. “Within the last 48 hours, over NZ$400 million in cryptocurrency has been returned on-chain,” the liquidator announced.
Since the 2019 attack, liquidators have worked meticulously to identify verified account holders, following a 2020 court ruling by Justice Gendall that enabled repayments. This marks the first round of distributions, with plans to continue issuing refunds in the coming months.
Complex Recovery Process Yields Results
The path to this milestone involved an intricate process of rebuilding the hacked exchange’s infrastructure and reconciling millions of transactions from nearly 960,000 users. Liquidators described the task as exceptionally challenging but crucial for ensuring rightful distribution to verified account holders.
Cryptopia Plans Additional Payouts
Cryptopia liquidators have also proposed a supplementary “top-up” distribution for users. This would enable account holders to potentially recover up to 100% of their original holdings using unclaimed funds from users who failed to meet registration deadlines.
Grant Thornton stated that a soft cut-off date will soon be issued, urging unregistered users to complete their claims via the designated portal. Those who miss the deadline will forfeit their claims, leaving additional assets available for redistribution.
Plans are underway for subsequent rounds of payments to newly verified account holders, with distributions expected to continue into next year.
This successful recovery and reimbursement effort highlight a significant milestone for Cryptopia’s former users, offering closure after years of uncertainty and loss.
