Following the bankruptcy of the New Zealand-based cryptocurrency firm Cryptopia in 2019, digital asset distribution to victims has commenced. Grant Thornton announced a $225 million allocation to investors.
Crypto Distribution Process
In the last two days, over 10,000 account holders with Bitcoin and Dogecoin holdings received their initial distributions. Approximately $400 million New Zealand Dollars (about $225 million USD) worth of cryptocurrency has been returned to the network. Cryptopia declared bankruptcy after a cyber attack in January 2019 that resulted in millions of dollars of 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.
Significance for Investors
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.
Cryptopia's digital asset distribution marks a significant step forward for investors in reclaiming their lost funds due to the hack.
