Following the bankruptcy of the New Zealand-based cryptocurrency firm Cryptopia in May 2019, a distribution of digital assets to victims has commenced. According to an announcement by accounting firm Grant Thornton, a total of $225 million worth of digital assets will be allocated to investors holding Cryptopia accounts.
Crypto Distribution Process
In the last two days, over 10,000 account holders, confirmed to have holdings in Bitcoin and Dogecoin received their initial crypto distributions. Within the past 48 hours, $400 million New Zealand Dollars (approximately $225 million USD) worth of cryptocurrency has been returned on the network.
Cryptopia declared bankruptcy as the only option after suffering a cyber attack in January 2019 that resulted in millions of dollars in losses. This process was initiated to protect the interests of customers, employees, and other stakeholders.
Liquidators’ Statements
While creditors of the FTX exchange are eagerly waiting, Cryptopia victims have been anticipating this day for much longer. Investors who missed the previous bull market are finally reclaiming their balances after nearly six years.
“The liquidators of Cryptopia are pleased to announce an important milestone in the ongoing liquidation process. We understand that Cryptopia customers want this matter resolved as soon as possible. We will conduct a thorough review with management and stakeholders to find the solution most favorable to customers and stakeholders.”
Grant Thornton’s liquidators ensured that the crypto distributions comply with a judge’s ruling from 2020 that recognized digital assets as property in liquidation contexts. Accordingly, the aim is to provide customers with a fair and transparent process.
This development allows investors affected by the hack to partially reclaim their lost assets after a long wait. With the continuation of distributions, other victimized investors are also expected to receive their entitlements.
