Cryptopia, a New Zealand-based cryptocurrency exchange, has announced plans to begin returning cryptocurrencies to its account holders. This move comes after the exchange was targeted in a cyberattack in 2019, which led to significant losses. According to an email sent to users, the first round of distribution will involve Bitcoin (BTC) and Dogecoin (DOGE), which are expected to be returned to qualifying users within the next three months.
The decision to start the distribution process follows a ruling on March 1 in the company’s bankruptcy case by a high court in Wellington, New Zealand. The email from Cryptopia detailed instructions for account holders on how to claim their cryptocurrencies, indicating that after the initial distribution of BTC and DOGE, the process to distribute the remaining cryptocurrencies of sufficient value will continue, aiming for completion by the end of 2024.
Recovery and claims process following Cryptopia’s liquidation
Cryptopia faced a major setback in 2019 when it was hacked, leading to a loss of $15.5 million. The platform’s vulnerabilities were exploited again in 2021 during its liquidation phase, with a former employee stealing $170,000 worth of crypto from a wallet associated with the exchange. The recent communication to users also mentioned the possibility of recovering stolen cryptocurrencies, which could be returned to those who had contributed to the hack recovery costs or had their funds stolen directly.
The liquidators noted that assets recovered by the FBI would be used to further trace and recover stolen funds, aiming to provide restitution to affected account holders. This step marks the beginning of Cryptopia’s efforts to address the losses incurred by its users due to the cyberattacks and subsequent thefts.
