Cryptopia Begins Distributing $225M in Crypto to Hack Victims After Six Years

Cryptopia Begins Distributing Cryptocurrency to Hack Victims

Cryptopia, the defunct cryptocurrency exchange, has initiated the distribution of funds to users impacted by the hack in 2019.

Grant Thornton, the liquidator handling the distribution, announced on December 20th that it has distributed cryptocurrency to over 10,000 verified account holders.

In the past two days, users holding Bitcoin and Dogecoin have received payouts totaling at least 400 million New Zealand dollars (approximately $225 million).

This distribution marks a significant step in Cryptopia's liquidation process, which began with the launch of a claims portal in 2020.

Grant Thornton confirmed that the initial distributions are part of a larger effort to compensate creditors. The firm will notify account holders about upcoming distribution deadlines.

"There may be an additional top-up distribution, allowing account holders to recover up to 100% of their holdings, using unclaimed funds from users who remain unregistered after the cut-off dates," stated Grant Thornton.

The liquidators urge remaining account holders to complete their registrations to qualify for future payouts. Additional distributions for newly verified users are expected to begin in early 2025.

In 2019, Grant Thornton estimated that Cryptopia owed its creditors $4.2 million.

Earlier in 2023, Cryptopia made a significant milestone by launching its token, $TOS, on Gate.io. The token aims to enhance the decentralized gaming space, and its launch was celebrated with an airdrop campaign. The campaign garnered active participation, with over 180,000 missions completed. Community members earned $TOS tokens and gained firsthand experience with Cryptopia's gaming ecosystem.