New Zealand’s Cryptopia pays back $225m to account holders after liquidation

Bankrupt Crypto Exchange Cryptopia Refunds $225 Million to Account Holders

Cryptopia, a defunct crypto exchange, has initiated the first phase of its distribution plan by returning approximately $225 million in cryptocurrency to over 10,000 account holders.

Liquidators have been working to identify and compensate users since Cryptopia's bankruptcy in 2020. The initial distribution includes Bitcoin (BTC) and Dogecoin (DOGE) funds.

Grant Thornton, the firm overseeing Cryptopia's liquidation, highlighted that this stage represents only a fraction of the total users entitled to compensation. An estimated 960,000 accounts may be eligible for future distributions.

"The complex process involved rebuilding the hacked exchange and reconciling transactions from almost 960,000 users," said Grant Thornton.

Account holders are urged to register on the claims portal to receive future distributions. Grant Thornton will provide notice of the cut-off date for registration in the near future.

Cryptopia's bankruptcy resulted from a hack in 2019, leading to losses of around $16 million. In May 2019, liquidators estimated that creditors were owed an estimated $4.2 million.