The bankruptcy proceedings of the New Zealand-based cryptocurrency exchange, Cryptopia, have begun distributing substantial funds to its affected users. An announcement from Grant Thornton disclosed that a total of $225 million in digital assets is set to be disseminated among account holders impacted by the firm’s insolvency in May 2019.
How is the Distribution Process Organized?
In a recent development, over 10,000 account holders confirmed to possess Bitcoin and Dogecoin have already received their initial distributions. In the last 48 hours, cryptocurrency approximating $225 million USD has been returned to the network as part of this distribution effort.
What Led to Cryptopia’s Bankruptcy?
Cryptopia’s decision to file for bankruptcy followed a devastating cyberattack in January 2019, which resulted in significant financial losses. This action was essential to safeguard the interests of its customers, employees, and various stakeholders during a tumultuous time.
Highlights of the distribution include:
- Over 10,000 account holders receiving Bitcoin and Dogecoin distributions.
- The total amount distributed is approximately $225 million USD.
- Compliance with a 2020 judicial ruling classifying digital assets as property during liquidation.
- A thorough review process by liquidators for a transparent distribution.
This initiative represents a significant step towards restitution for investors who were affected by the cyber theft, enabling them to reclaim a portion of their assets after a prolonged period of uncertainty.