Cryptopia’s Road to Recovery: Returning Cryptocurrencies to Account Holders Following the 2019 Cyberattack
New Zealand-based cryptocurrency exchange, Cryptopia, has recently announced its plans to begin returning cryptocurrencies to its account holders. This decision comes after the exchange experienced a significant setback in 2019, when it was targeted by cybercriminals, resulting in losses worth $15.5 million. In a recent email sent to users, Cryptopia detailed its intentions to distribute the first round of cryptocurrencies, which include bitcoin (btc) and dogecoin (DOGE), within the next three months.
The Court Ruling Paves the Way for Distribution
The distribution process was set in motion following a ruling on March 1, 2023, by the High Court in Wellington, New Zealand. In the email communication, Cryptopia provided clear instructions to account holders on how to claim their cryptocurrencies, indicating that the process would continue to distribute the remaining cryptocurrencies of significant value. The goal is to complete the distribution by the end of 2024.
Addressing Losses and Recovering Stolen Funds
Cryptopia’s recovery process also includes the possibility of recovering stolen cryptocurrencies. The liquidators have mentioned that any assets recovered by the FBI would be used to further trace and recover stolen funds, with the ultimate goal of providing restitution to affected account holders. This includes those who had contributed to the hack recovery costs or had their funds stolen directly.
A Long and Complicated Journey
The road to recovery for Cryptopia has been a long and complicated one, with the platform facing further setbacks even during its liquidation phase. In 2021, the exchange faced another blow when a former employee stole approximately $170,000 worth of cryptocurrencies from a wallet associated with Cryptopia.
The recent communication to users also serves as an update on the progress made towards addressing the losses incurred due to these cyberattacks and subsequent thefts. The liquidators’ commitment to return the stolen funds represents an essential step forward for Cryptopia as it works towards restoring trust and providing compensation to its account holders.
The distribution process marks the beginning of Cryptopia’s efforts to make amends for the damages caused by the cyberattacks, and account holders can look forward to receiving their cryptocurrencies as part of this recovery effort.
