Cryptopia, a New Zealand-based crypto exchange, has started distributing approximately $225 million worth of cryptocurrency to its account holders. This marks the first phase of the exchange’s distribution plan since it went bankrupt in 2020.

Cryptopia’s Distribution Plan

According to Grant Thornton, the public accountancy firm in charge of liquidating Cryptopia’s assets, more than 10,000 account holders of Bitcoin and Dogecoin have received crypto funds worth over NZ$400 million ($225 million) in the past 48 hours.

Grant Thornton has been working towards identifying users to proceed with return payments since the launch of Cryptopia’s claim portal four years ago, following a 2020 verdict by Justice David Gendall.

Compensation for Account Holders

The firm revealed that 10,000 accounts is just a small fraction of the total number of users entitled to compensation. Cryptopia has an estimated 960,000 users who are eligible to receive compensation after the exchange went bankrupt.

This complex process also involved rebuilding the hacked cryptocurrency exchange and reconciling millions of transactions from nearly 960,000 users.

Future Distribution Plans

Grant Thornton hinted at an additional top-up distribution plan for Cryptopia account holders, which would allow them to receive up to 100% of funds from the “unclaimed holdings” owned by account holders who remain unregistered in the claims portal after the cut-off date has passed.

Tips for account holders:

  • Register on the claims portal as soon as possible to meet the requirements for future distributions.
  • Take necessary steps to verify your account and ensure you receive the compensation you are entitled to.

Grant Thornton stated that it will continue to remind account holders to register on the portal and take the necessary steps to meet the requirements for future distributions. The firm plans to give account holders notice of the soft cut-off date in the coming days, with further distributions for newly verified users planned for the new year.

Cryptopia’s Bankruptcy

Cryptopia went bankrupt in 2019 after suffering a hack that cost the exchange around $16 million in crypto assets. In May 2019, liquidators estimated that the exchange owed creditors an estimated total of $4.2 million.

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