tl;dr
Cryptopia, a defunct crypto exchange, is distributing $225 million worth of digital assets to hack victims. More than 10,000 verified account holders have already received their first cryptocurrency distributions, totaling over $400 million NZD. The exchange was hacked in January 2019, leading to it...
Cryptopia, a defunct crypto exchange, is distributing $225 million worth of digital assets to hack victims. More than 10,000 verified account holders have already received their first cryptocurrency distributions, totaling over $400 million NZD. The exchange was hacked in January 2019, leading to its collapse in May 2019. Grant Thornton, the accounting firm overseeing the liquidation, aims to resolve the matter in the best interests of customers and stakeholders, in line with a judge's ruling that digital assets are considered property in liquidations.
Hundreds of millions of dollars worth of crypto assets are being distributed to hack victims of the defunct crypto exchange Cryptopia. Investors who had accounts with Cryptopia – a New Zealand-based crypto firm that collapsed in May 2019 – will collectively receive $225 million worth of digital assets, according to a new press release by accounting firm Grant Thornton. “The liquidators of Cryptopia are pleased to announce a significant milestone in the ongoing liquidation process. Over the past two days, more than 10,000 verified account holders of Bitcoin and Dogecoin have received their first cryptocurrency distributions. Within the last 48 hours, over $400 million NZD ($225 million USD) in cryptocurrency has been returned on-chain.”
Cryptopia was initially hacked in January 2019 when bad actors stole millions of dollars worth of digital assets. Months later in May, the company decided it would be in the “best interests of customers, staff and other stakeholders” to appoint liquidators. Said David Ruscoe, a Grant Thornton liquidator assigned to Cryptopia, “We realize Cryptopia’s customers will want to have this matter resolved as soon as possible. We will conduct a thorough investigation, working with several different stakeholders including management and shareholders, to find the solution that is in the best interests of customers and stakeholders.”
According to the press release, the liquidators have worked to ensure the crypto distributions were consistent with a judge’s 2020 ruling that digital assets were property in the context of liquidations.