Good news for affected users: Cryptopia begins compensation for hacking damages

Cryptopia, a cryptocurrency exchange originating from New Zealand, has finally begun the process of refunding assets to affected users after years of legal battles. Following the ruling by the Wellington High Court on March 1st, the company revealed in an email to users on Thursday that it plans to distribute Bitcoin (BTC) and Dogecoin (DOGE) within the next three months.

The Turbulent History of Cryptopia

Cryptopia’s troubles date back to 2019. That year, a major hacking incident resulted in the loss of approximately $15.5 million worth of assets from the platform. Due to this security breach, the exchange was forced to suspend its services. Even more unfortunately, during the liquidation process in 2021, another unauthorized access occurred, and $170,000 worth of cryptocurrency was stolen by an internal party.

Currently, BTC is trading at about $90,740, and DOGE at approximately $0.14, but the current value of the affected assets may differ significantly from those at the time of the incident.

Details of Eligible Recipients and Procedures

The refund plan is complex. It includes not only users who suffered asset losses but also account holders who contributed to covering the “hacking recovery costs.” The email contains detailed explanations of who qualifies to claim and the specific procedures for making claims.

Utilization of FBI-Recovered Assets and Future Developments

An important point is that assets recovered by the FBI are expected to be used for further tracking and recovery efforts. The liquidator and Cryptopia are considering allocating these recovered assets toward additional damages and compensation. After years of legal battles, affected users are finally facing the opportunity to recover some of their losses.

Details regarding the timing of refunds, specific methods of receipt, and the amounts each user will receive are scheduled to be announced in upcoming updates.