In a significant development for the cryptocurrency community, victims of the notorious 2019 Cryptopia hack are finally experiencing a sense of justice. The liquidators managing the bankrupt exchange have initiated the return of millions of dollars in crypto assets, marking a crucial step in addressing the fallout from one of the most prominent hacks in the crypto industry.
Hacked Victims Finally Receive $225 Million
In a recent update, Grant Thornton, the firm overseeing the liquidation of Cryptopia, announced that more than 10,000 verified account holders are now receiving payouts exceeding $225 million in various cryptocurrencies, including Bitcoin and Dogecoin. This achievement comes after years of meticulous work to accurately identify users and verify millions of transactions associated with nearly a million accounts.
The introduction of Cryptopia’s claims portal in 2020 was instrumental in this process. The liquidators diligently worked to ensure that the distribution of assets complied with a court ruling from March 2020, which provided clarity on how the assets should be returned to the rightful users.
More Funds to Be Distributed
This initial wave of distributions is just the beginning of the compensation process. Grant Thornton has announced plans for additional payouts to verified users, with the possibility of “top-up” distributions for individuals who have not yet received their full holdings. These supplementary distributions are expected to utilize unclaimed assets from users who fail to register on the claims portal before the final deadlines.
The liquidators are urging all remaining account holders to complete their registration on the portal to qualify for future distributions. New rounds of payouts are anticipated in the coming year, providing renewed hope to users eagerly awaiting the recovery of their funds.
The Cryptopia Hack
At its zenith in 2018, Cryptopia was New Zealand’s largest cryptocurrency exchange, boasting a user base of 1.4 million. The exchange was a trailblazer in the local crypto scene, even launching a stablecoin in 2017. However, the trajectory of Cryptopia took a disastrous turn in January 2019 when a hack led to the loss of $16 million in crypto assets. This incident precipitated the exchange’s liquidation, leaving it with a debt of $4.2 million to creditors.
The recent payouts offer a glimmer of hope to thousands of affected users, demonstrating that even in the most challenging situations, resolutions can be achieved. This case serves as a reminder of the importance of security and due diligence in the rapidly evolving world of cryptocurrency, and it highlights the efforts made to restore justice for those impacted by unforeseen events.
