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Bankrupt Cryptopia Exchange to Return Crypto to Some Creditors

Bankrupt crypto exchange Cryptopia plans to distribute bitcoin and dogecoin to qualifying account holders in the coming months.

The New Zealand company filed for liquidation after millions of dollars of tokens were stolen from the platform in a 2019 cyber attack.

Cryptopia, a New Zealand-based crypto exchange being liquidated following a 2019 cyber attack, will start returning crypto to some of its account holders, according to an email sent to users on Thursday.

The first round of distribution will see qualifying users getting their bitcoin (BTC) and dogecoin (DOGE) back in the next three months, the email said.

“After the first distribution we will follow the approved process including giving notice of any cut-off dates before distributing to account holders the remaining Bitcoin, Dogecoin and all other cryptocurrencies of sufficient value by the end of 2024,” the email said.

The distribution plans follow a March 1 ruling in the company’s bankruptcy case unfolding at a high court in Wellington, New Zealand.

The email included instructions on who can make claims and how to do so.

Cryptopia went offline in 2019 after $15.5 million was stolen from the platform. In 2021, while the platform was being liquidated, it was hacked again – this time by a former employee who stole $170,000 in crypto from a wallet tied to the platform.

Stolen crypto that may be recovered could go back to account holders who contributed to “hack recovery costs” as well as users who had their funds stolen.

“The Liquidators and Cryptopia can use the assets recovered by the FBI for further tracing and recovery actions,” the message said.

Oliver Knight contributed reporting.

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