Cryptopia Exchange to Distribute Bitcoin and Dogecoin to Qualifying Account Holders

Bankrupt crypto exchange Cryptopia has announced plans to distribute bitcoin and dogecoin to qualifying account holders in the coming months. The New Zealand-based company filed for liquidation after millions of dollars worth of tokens were stolen from the platform in a 2019 cyber attack.

According to an email sent to users on Thursday, the first round of distribution will see qualifying users receiving their bitcoin (BTC) and dogecoin (DOGE) back within the next three months. The email stated, “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.”

These distribution plans come following a March 1 ruling in the company’s bankruptcy case unfolding at a high court in Wellington, New Zealand. The email also 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 potentially go back to account holders who contributed to “hack recovery costs” as well as users who had their funds stolen. The message stated, “The Liquidators and Cryptopia can use the assets recovered by the FBI for further tracing and recovery actions.”

It is important to note that the distribution of crypto assets to account holders is a positive development for those affected by the Cryptopia hack. This move demonstrates the company’s commitment to returning funds to its users despite the challenges it has faced.

Overall, the distribution of bitcoin and dogecoin to qualifying account holders marks a significant step towards resolving the aftermath of the Cryptopia cyber attack and providing some relief to those impacted by the exchange’s liquidation.