It was the company’s job to secure the assets on behalf of all the stakeholders and confirm the amount that the company owed to each one of its customers. On May 15th, 2019, the Cryptopia team announced that the company was going into liquidation, which meant it was going to sell all the assets to dissolve and finally close the company. Crytopia is a peer-to-peer cryptocurrency exchange based in Christchurch, New Zealand, launched by Rob Dawson and Adam Clark in 2014. Just like Binance or Coinbase, Cryptopia used to be a cryptocurrency exchange platform.

1. A detailed breakdown of costs and a description of the work processes can be found in the report.
2. The platform supported a wide variety of cryptocurrencies, such as Ethereum (ETH), Litecoin (LTC), Cardano (ADA), and even  ERC-20 tokens, or lesser-known tokens such as Electroneum (ETN).
3. If you are not, we hope that you take a valuable lesson from this story on the risks that come with storing your assets on exchange platforms.
4. “The Liquidators and Cryptopia can use the assets recovered by the FBI for further tracing and recovery actions,” the message said.
5. After further investigations, Cryptopia announced that 9.4% of the assets stored on its servers were stolen.

Claims process update

The long, drawn-out process of returning customer funds continues for Cryptopia liquidators Grant Thornton – with the latest liquidators report being released on 12th June. Stolen crypto that may be recovered could go back to account holders who contributed to “hack recovery costs” as well as users who had their funds stolen. If you are unsure whether a communication is an official communication from us, please raise a helpdesk ticket in Zendesk at the above link. This Zendesk portal is separate from the claims portal and can be accessed by any account holder, provided they register and click the “Sign Up” button on the page. The hack saw over 70,000 wallets compromised and over US$23 million in Ethereum (ETH) and ERC-20 tokens stolen. A second hack occurred on January 28th, where an additional US$284,000 from 17,000 wallets was captured.

The project initially started off as a hobby, but by 2017, the duo quit their jobs to run the platform full-time, probably thanks to the soaring Bitcoin (BTC) prices at the time. Lastly, the only official communication from the liquidators will be sent from the no- email. The agreement to purchase Cryptopia account holders’ cryptocurrency that is mentioned above includes a clause about the assignment of coins to that third party.

We also believe that these third parties communications maybe based on the continued misuse of confidential information released by the High Court in 2020. The official methods of communication from the liquidators to Cryptopia account holders are outlined at the end of this update. We understand third parties have contacted account holders offering to purchase their Cryptopia entitlements in exchange for an obscure digital currency. This agreement requires the assignment or transfer of account holders Cryptopia owed holdings to that third party. After this primary distribution of cryptocurrencies that are of sufficient value, there may be an additional top-up distribution to account holders, allowing them to receive up to 100% of their holdings. If this supplementary distribution takes place it should occur before the middle of 2025.

Cryptopia update – Liquidator Says It’s Close To Returning Funds

Such links don’t imply our endorsement, and we aren’t liable for the content, products, or services of these third-party entities. While we strive for accuracy, the content on our Website, including articles, reviews, and opinions, is for informational purposes and may not always be up-to-date or error-free. If you are unsure whether a communication is an official communication from us, please raise a helpdesk ticket in Zendesk. Following this collection, we intend to make an interim distribution to those qualifying and registered Bitcoin and Dogecoin holders within the next quarter.

Update for Cryptopia Claimants and Stakeholders 21 June 2024

The decision was firstly driven by the fact that cryptocurrency is “property” for the purposes of the Companies Act 1993. And secondly, the account holders’ cryptocurrency is held in trust by Cryptopia on behalf of users. In a blog post Wednesday, the New Zealand branch of accountancy firm Grant Thornton said it has opened a claims portal allowing affected users to register for the repatriation of property still held by the exchange. All accounts were frozen after over US$17 million in ether and ERC-20 tokens was stolen during a hack in early 2019. Last week the Liquidators released the eleventh statutory report in the liquidation of Cryptopia. We encourage all account holders to read this report that provides an update on the overall claims process which is summarised below.

The claims portal has been designed to verify each account holder’s account ownership and identity, and it is very important this sensitive process is protected. Cryptopia’s terms and conditions record that account holders may not assign their rights or obligations. The liquidators consider that the terms and conditions remain in force, and any assignment or transfer of an account holder’s entitlements is not binding or enforceable against Cryptopia. We issued proceedings against these third parties to prevent them from continuing to mislead or confuse account holders. In response the New Zealand Courts has granted injunctions prohibiting these parties from continuing to represent themselves using Cryptopia’s cryptopia withdrawal name.