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Update for Cryptopia Claimants and Stakeholders 28 March 2022

Update on Claims process

We continue to follow the claims process previously reported. In October 2021 stage 2 of the claims process was launched to qualifying users. This has been a staged process due to the fact that Cryptopia users are domiciled in 183 different countries. The Liquidators are still seeing good progress to date with many account holders registering and verifying their identity. This is step 2 in the previously reported.

  Process Details
1 Claims registration Allows the registration of account holders' details and to make claims for their account balances
2 Identity verification Verifies account holders' identities to the necessary verification standard
3 Claim acceptance Provides Account holders’ opportunity to agree that Cryptopia records represents amount due
4 Asset transfer Instigates asset transfers to account holders

To support the claims process a dedicated customer support portal has been deployed. To date, the customer support team, via this portal, has supported over 82,000 users through the registration process. We continue to build this team to assist account holders to complete the claims and asset transfer process.We continue to encourage claims registration and continue to send reminder emails to those who are yet to engage. At the date of this report, 82.3% of users by value have interacted in the claims process in some way. However, a number of these account holders may have opened the email or clicked on the link to the portal but are yet to actively engage in registering their claim.

If you are having issues with the registration, please refer to the ‘Update for Cryptopia Claimants & Common Portal Errors 16 December 2020' page or contact the dedicated team via the customer support portal at the Cryptopia customer support portal. This support portal is separate from the claims portal and can be accessed by any account holder, provided they register and click the “Sign Up” button on the page.

Before progressing to the next stage ‘3. Claim acceptance’, we need further progress in account holders participating in stages 1 and . This is because it is important that as many account holders as possible participate in stage 4 of the process “Asset transfer”. We realise that this maybe frustrating to some account holders who have already registered their claim. However, we are dealing with over 900,000 account holders from 183 different countries and contacting and interacting with these account holders is taking time.

Stage 3 will then give an opportunity to account holders to agree the balances of their Cryptopia account as recorded in the customer database at the date of Liquidation.

As previously reported the asset transfer stage will follow on from this. However, the transfer stage will require the input and approval of the Court particularly in relation to the following:

  • Approving a distribution model that reflects the nature of stakeholders’ property
  • Confirming what is to be done with unclaimed Crypto assets
  • Setting a cut-off date for claims to be received and assessed

We expect to file applications on these matters in the coming months.

Ex-employee theft

In August 2020 an ex-employee admitted stealing historic private keys (and subsequently funds) from the Company. All funds taken were subsequently recovered by the liquidators. No connection between this theft and the January 2019 hack has been identified.

We now report that Michael Glaser (a Cryptopia employee pre-liquidation) was sentenced in the Christchurch district court on 18 March 2022 and ordered to pay the Liquidators approx. $21,255 in reparations.

Sealed orders

  • In this update we provide service of orders in respect of realisation of digital assets. We have received orders permitting us to convert the equivalent of NZD$5 million Dogecoin (DOGE) into fiat currency to meet the reasonable cost and expenses of and incidental to the protection, preservation, recovery, management, and administration of any Cryptocurrency.
  • Link to Court Order.

Where to go for updates

We appreciate that you want to be advised of our progress on the Cryptopia liquidation with our next statutory report due in June 2022. However, we expect to provide an update on legal applications before this date. We will continue to update you as further information comes to hand and to provide updates on the claims process. Updates can be found on the Grant Thornton New Zealand website, as well as the social media channels for Grant Thornton and Cryptopia.