Cryptopia, a New Zealand-based cryptocurrency exchange that went bankrupt after a hack in 2019, has started returning funds to affected users.
Cryptopia was founded in 2014 and quickly became one of New Zealand’s first cryptocurrency exchanges. By 2018, it had over 1.4 million users and even launched one of the country’s first stablecoins, NZed (NZDT), backed by the New Zealand dollar.
On December 20, Grant Thornton, the firm managing Cryptopia’s liquidation, announced the start of payments to users impacted by the hack. Over two days, more than 10,000 verified account holders received partial distributions of Bitcoin
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The payouts totaled approximately 400 million New Zealand dollars, equivalent to $225 million.
Grant Thornton plans to continue distributing the remaining assets, mentioning further payments for newly verified users are expected to begin in the New Year. They will also announce deadlines for users to register and submit claims before additional distributions occur.
Grant Thornton also urged account holders to register and use the claims portal, ensuring they are included in future payouts.
Furthermore, the liquidators have mentioned the possibility of “top-up” payments. These payments allow account holders to recover up to 100% of their lost funds using "unclaimed holdings" from users not registered in the claims portal by the specified cut-off dates.
As Cryptopia users begin reclaiming their funds after nearly six years, another crypto exchange, FTX, is also preparing its refund process. When will FTX distribute the funds to its users? Read the full story.
