Liquidators handling the collapse of New Zealand-based cryptocurrency exchange Cryptopia have distributed more than NZD 400 million worth of cryptocurrency to verified account holders. Over 10,000 users with Bitcoin and Dogecoin holdings received their first distributions within the past 48 hours.

This marks the first major payout since the exchange entered liquidation in 2019 after a devastating hack. The process involved reconciling millions of transactions for nearly 960,000 users and rebuilding parts of the exchange’s infrastructure.

According to Grant Thorton’s announcement, the distribution follows a court ruling by Justice Gendall in March 2020, which directed that users’ funds be returned in-specie. Liquidators have confirmed they will continue the approved process, including announcing cut-off dates before distributing remaining Bitcoin, Dogecoin, and other cryptocurrencies with sufficient value.

Liquidators have also indicated the possibility of a “top-up” distribution. This would use unclaimed holdings from accounts not registered by the cut-off date, allowing account holders to recover up to 100% of their assets. Notices regarding these deadlines are expected in the coming days.

Account holders who have not yet registered on the claims portal are encouraged to do so as soon as possible to be eligible for future distributions. Liquidators have stated that further distributions for newly verified users are planned for early 2025.

Cryptopia was one of New Zealand’s largest cryptocurrency exchanges before its collapse. The liquidation process has been notably complex, involving extensive efforts to trace and secure assets for distribution. Liquidators have declined to provide further comment as the process continues.