• The Claims Process for the Hacked Cryptopia Exchange Has Moved to the Second Stage

  • Cryptopia, the New Zealand-based cryptocurrency exchange that was the victim of a massive multi-million dollar hack in May of 2019, informed users that “Stage 2” of the liquidation process had begun. This stage, which comes after the registration of claims, is concerned with the verification of claimants’ identities.

    The Tweet is written in a way that implies the process will be carried out by region: “When their country is ready for verification, account holders should expect to receive an invitation email to login to the claims portal.”

    However, according to the website, which posts official updates on the liquidation process, the most recent official notice was issued in June of 2021. This notice confirms that the next official statuary update is scheduled for December of this year.

    Over 55,000 users had completed the claims registration step as of June 2021. Former users of the Cryptopia exchange were required to take this step in order to reclaim their funds. The process also involves a lot of red tape from the New Zealand court system.

    Dystopia of cryptopia

    This announcement comes nearly two years after the process of liquidating and returning client assets began. After the platform was hacked, the company went into liquidation in December of 2019 with an unknown repayment date. Cryptopia had over 900,000 global users, some of whom sued to have their assets classified as “property.” The liquidation process is the result of t’s court victory.

    While the repayment date is still unknown, the company has devised a four-stage strategy. The “Stage 1” claims registration process began in December 2020.

    A former employee stole nearly $250,000 in cryptocurrencies during the liquidation process by making unauthorized copies of customer wallet keys, exacerbating the situation. In July of this year, this employee pled guilty to charges in New Zealand courts and is scheduled to be sentenced later this month.

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