Cryptopia, a New Zealand-based cryptocurrency exchange that went bankrupt after a catastrophic cyberattack in 2019, has unveiled its plan to return digital assets to its affected users.
This decision comes after a lengthy period of legal battles and uncertainty, signaling a potential reprieve for those impacted by the breach, as detailed in a Coindesk report.
In 2019, Cryptopia suffered a massive security breach that led to the loss of millions of dollars worth of tokens. This incident forced the exchange to file for liquidation and halt its operations.
However, the recent announcement indicates that Cryptopia is ready to begin redistributing Bitcoin and DOGE tokens to eligible account holders.
The exchange’s move to initiate asset distribution follows a crucial court ruling on March 1 in Wellington, New Zealand, which represents a significant step forward in its bankruptcy proceedings.
This development is seen as a beacon of hope for users who have been eagerly waiting for the recovery of their lost cryptocurrencies.
The cyberattack wasn’t Cryptopia’s only hurdle; the platform experienced further disruptions when a former employee compromised its security in 2021, adding to its financial difficulties.
Coindesk reports that the first asset distributions to qualifying users are expected to occur within the next three months.
Cryptopia confirmed the 2019 hack on January 14, leading to an indefinite suspension of trading. Prior to this event, the exchange operated smoothly without significant issues.
However, the breach resulted in a temporary shutdown as Cryptopia worked to assess the extent of the damage.
Although the exact amount stolen wasn’t disclosed, the exchange collaborated with New Zealand police and the High Tech Crimes Unit to track down the culprits and attempt to recover the stolen assets.
In a notable development in 2021, a former Cryptopia employee admitted to stealing $176,000 worth of cryptocurrency and customer data.
During a court session before Judge Gerard Lynch at the Christchurch District Court, the individual, represented by lawyer Allister Davis, pleaded guilty to theft by a person in a special relationship and theft of more than $1,000.
Following this admission, he was remanded on bail until his sentencing on October 20, 2021, according to Finance Magnates.
This series of events marks a significant chapter in the tumultuous history of Cryptopia, as it navigates through its bankruptcy and attempts to rectify the damage inflicted by the cyberattack and internal theft.