Cryptopia Update: Victims of Hacked Bitcoin Exchange to Receive $100M Compensation | BTCMANAGER
Bitcoin, Blockchain & Cryptocurrency News
A Christchurch High Court has ruled that over 800,000 users of the now-defunct cryptocurrency exchange platform Cryptopia, are entitled to the digital assets held in their accounts before the hack occurred.
Cryptopia Users Win $100M Crypto Assets Court Case
According to the documents of a Christchurch High Court verdict published on Wednesday (April 8, 2020), liquidators from accounting firm giant Grant Thornton have been ordered to reimburse over 800,000 users of Cryptopia’s exchange platform.
Previously, liquidators filed documents arguing that the remaining crypto assets held by the exchange should not be recognized as property. The assets in question amount to about $101 million.
However, Justice David Gendall of the Christchurch High Court dismissed the notion and added that users are entitled to their crypto balances as Cryptopia held the digital assets in separate trust accounts. An excerpt from the ruling reads:
“The argument that cryptocurrency is mere information and therefore it is not property is a simplistic one and, in my view, it is wrong in the present context.”
Since the exchange’s liquidation back in May 2019, there has been an ongoing battle between 90 shareholders, 37 creditors, and over 800,000 users as to how the remaining assets held by Cryptopia should be disbursed.