Court Update – May 2026 Hearings
The Liquidators of Cryptopia Limited (in liquidation) have recently filed two applications with the High Court. These matters are scheduled to be considered by the Wellington High Court this month.
1. Application to Vary Distribution Orders
On 23 April 2026, the Liquidators filed an interlocutory application seeking a variation to the existing Court orders governing cryptocurrency distributions.
The application asks the Court to clarify that the Liquidators are permitted (but not required) to accept and determine:
- claims where the account holder started, but did not complete, the claims process by the final cut off date of 30 September 2025; and
- claims submitted after the final cut off date, provided that accepting those claims would not prejudice the administration of the trusts or the liquidation.
The purpose of this application is to allow distributions to account holders who have completed and/or registered after the hard-cut off date being the 30 September 2025 by allowing the Liquidators discretion to consider incomplete or late claims where appropriate. A copy of the filed application and tracked changes version showing changes request is below.
The first hearing on this matter was scheduled to occur on the 18 May 2026. However, this will be heard at the same time as the directions hearing.
Originating application
a. Interlocutory application to vary orders
b. Memorandum of counsel in support of varying orders
c. Draft orders (showing changes from the existing orders)
2. Application for Directions on Unclaimed Trust Assets
The Liquidators have also filed an amended application previously seeking directions from the Court on the treatment of unclaimed and residual trust assets, and other related issues. Notice of this hearing was filed sent to Account holders in 2025 with the Originating application being filed in July 2025.
This application addresses matters including:
- To determine liability relating to the hack
- The amount of a contingent creditor claim
- how unclaimed or abandoned cryptocurrency should be dealt with,
- whether unclaimed holdings can be used to increase distributions to other eligible account holders,
treatment of trusts with surplus assets, - NZDT balances, and
- steps required to complete distributions and progress the liquidation toward closure.
The Amended application further clarifies the orders sought by the Liquidators specifically in regard to permitting distributions of unsecured creditor claims in stablecoin; the treatment of unclaimed or abandoned trust assets, including their use to top‑up distributions to eligible account holders (up to 100% of pre-hack balances); the application of final cut‑off dates (including for NZDT); the conversion of cryptocurrencies to NZD or stablecoin to complete distributions and wind up the trusts; the handling of low‑ or no‑value cryptocurrencies; confirmation that assigned claims are not to be recognised; clarification of the treatment of trusts with surpluses; and increased reliance on existing claims data to reduce administration cost.
The Liquidators submission with regards to this application can be read below.
c. Updating affidavit of David Ian Ruscoe
Both applications are scheduled to be heard from 25 May 2026 to 2 June 2026 at the Wellington High Court.
What This Means for Account Holders
No action is required from registered account holders at this time.
Account holders who have not yet registered may still submit their details through the claims portal. However, as the applicable cut‑off date has passed, late‑registered account holders may not be eligible to receive a distribution, or may receive less than their full beneficial entitlement.
The amended applications do not reduce existing entitlements. They are intended to provide the Liquidators with the clarity and authority required to complete distributions fairly and efficiently, including addressing situations where claims were not completed before the applicable cut‑off dates.
Next Update
A statutory report is due in June and following the May 2026 hearings, a further update will be published summarising and outlining any next steps for account holders.