Cryptopia Issues User Update Regarding Liquidations From The 2019 Hack

Cryptopia, a New Zealand-based cryptocurrency exchange, has revealed the third stage of its refund plan in response to a 2019 theft that cost its users over $15 million.

Account holders whose identities have already been validated can access a claims portal in the third phase to verify that their balances are accurate. Customers will then collect their unpaid asset balances in stage 4.

Cryptopia’s 2019 hack

Cryptopia filed for bankruptcy protection and went into liquidation in May 2019 after a Jan. 2019 hack that saw 15% of client funds stolen.

Since 2020, Grant Thornton, the liquidator, has urged account holders to sign up and provide their identities. This is due to the fact that Cryptopia used a pooled wallet rather than individual ones to keep consumer monies. The exchange entered trades into a database and executed them on an internal ledger. The liquidator therefore had to reconcile both to determine customer balances prior to the attack.

The sending of invitations to customers, according to Grant Thornton, will take some time. Customers had the option of contacting the Cryptopia customer care portal with questions, according to the liquidator.

FTX start the arduous trek toward completeness

Customers of a particular Bahamian exchange are only now starting their path toward wholeness as the liquidation procedure of Cryptopia, which took over two years, has allowed them to breathe a bit better.

Sam Bankman-Fried (SBF), the CEO of FTX, said on November 10, 2022 that his failing cryptocurrency company was attempting to raise about $8 billion in cash to assist pay back consumers.

The figure raised some questions considering that the number of cryptocurrency businesses with sizable assets has significantly decreased since the collapse of the Terra stablecoin in May 2022.

After failing to secure the necessary funding, FTX filed for Chapter 11 bankruptcy on November 11, 2022. This implies that how clients and other stakeholders will be compensated will be decided by the courts. For creditors to consider, FTX has 120 days to submit a restructuring plan. The idea ultimately needs to receive approval from the Delaware Chancery Court. Additionally, FTX may carry doing business after declaring bankruptcy.

Shortly after, FTX said that owners of particular tokens on the Tron network could take their money out. Crypto lawyer Timothy Spangler stated on Bloomberg TV that it might take months or even years to fully compensate the remaining FTX clients.

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