As per a report on Cointelegraph, liquidators of the defunct cryptocurrency exchange Cryptopia have initiated distributions totaling $225 million to victims of the infamous 2019 hack. The liquidating firm, Grant Thornton, announced on December 20 that more than 10,000 verified account holders have started receiving payouts in Bitcoin (BTC) and Dogecoin (DOGE). This milestone follows years of legal proceedings and the launch of the Cryptopia claims portal in 2020, marking significant progress in compensating affected users.
Grant Thornton plans to continue distributing assets through an approved process that includes cut-off dates for claims. The firm noted that additional "top-up" distributions might be available for users, potentially enabling full reimbursement for registered account holders. The liquidator urged remaining Cryptopia users to register on the claims portal to be eligible for future payouts. Further distributions for newly verified users are expected to commence in early 2025, offering hope for those who have yet to receive compensation.
Cryptopia, once the largest cryptocurrency exchange in New Zealand with over 1.4 million users, suffered a $16 million hack in January 2019. At the time of its liquidation in May 2019, the exchange owed $4.2 million to creditors. Despite the significant financial loss, the ongoing distributions represent a step toward resolution for many affected users. Cryptopia's collapse serves as a stark reminder of the importance of security in crypto exchanges and the challenges of recovering from major breaches.