Some Creditors Get Crypto from Bankrupt Cryptopia Exchange

Insolvent cryptocurrency exchange In the following months, Cryptopia intends to fulfill its commitment to distribute bitcoin and dogecoin to account holders who meet the requirements.

A cyber assault in 2019 resulted in the theft of tokens worth millions of dollars from the network, prompting the New Zealand company to go through with the liquidation process.

According to an email that was sent out to users on Thursday, Cryptopia, a cryptocurrency exchange based in New Zealand that is currently in the process of being liquidated as a result of a cyber assault that occurred in 2019, will begin returning cryptocurrency to some of its account holders.

According to the email, the first round of distribution will take place within the next three months, during which customers who meet the requirements will receive their bitcoin (BTC) and dogecoin (DOGE) payments.

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," according to the correspondence.

After a verdict was handed down on March 1 in the bankruptcy case of the corporation, which was taking place at a high court in Wellington, New Zealand, the distribution plans were implemented.

A total of $15.5 million was taken from the Cryptopia platform in 2019, which resulted in the platform's shutdown. In the year 2021, the platform was once again hacked, this time by a former employee who took $170,000 worth of cryptocurrency from a wallet that was connected to the site. This occurred when the platform was being liquidated.

Account holders who donated to "hack recovery costs" and users whose monies were stolen could receive their stolen cryptocurrency if it is found. This would also apply to users whose funds were stolen.