Cryptopia Begins $225M Distribution to Hack Victims

Liquidators of the defunct cryptocurrency exchange Cryptopia have started compensating victims of a devastating hack that occurred nearly six years ago. The distribution, which began on December 20, marks a major milestone in the long-running liquidation process.

Grant Thornton, the firm overseeing the liquidation, confirmed that over 10,000 verified users have already received cryptocurrency payouts worth approximately 400 million New Zealand dollars ($225 million).

First Hack Payouts Reach Verified Users

The first wave of distributions included Bitcoin (BTC) and Dogecoin (DOGE) holdings, signaling progress in resolving claims from the 2019 hack that saw millions of dollars in crypto assets stolen. Grant Thornton launched the Cryptopia claims portal in 2020, enabling affected users to verify their accounts and register for compensation.

The liquidators plan additional distributions in the coming months. They will provide notice of cut-off dates for unregistered account holders before finalizing further payments. Grant Thornton also noted the possibility of additional “top-up” distributions to ensure victims recover up to 100% of their holdings using unclaimed funds from inactive accounts.

A Landmark Case in Crypto Exchange History

Cryptopia, founded in 2014, was once New Zealand’s largest cryptocurrency exchange, with 1.4 million users at its peak in 2018. It gained prominence as one of the first stablecoin issuers in the country, introducing the NZed (NZDT) stablecoin in 2017.

However, the January 2019 hack led to the loss of around $16 million in crypto assets, crippling the exchange. The company later entered liquidation in May 2019, with an estimated debt of $4.2 million to creditors.

Grant Thornton has urged remaining account holders to register on the claims portal to be eligible for future payouts. Additional distributions are expected in early 2024, providing hope for victims who have waited years for resolution.