Legal Directions
In our statutory report issued on 12 June 2023, we reported that we
would be filing application for directions (“the Distribution
Application”) in the Court and we confirm on 31 July 2023 we submitted
our application for directions to the Court in relation to the
following:
- To agree the date at which the trust assets, and as such, account holders’ balances, are calculated;
- Approving a distribution model for the cryptocurrency to account
holders including the allocation of costs against the trusts holding the
cryptocurrency (costs to date and future costs);
- Setting a cut-off date for account holders to participate in the claims process;
- Confirming the approach to unclaimed cryptocurrency (if any), which
could include the ability to use unclaimed cryptocurrency to reimburse
costs allocated to account holders and if any remaining, reimburse
account holders for cryptocurrency losses relating to the hack;
- Approval of a review process for account holders regarding any disputes arising from queries in claims balances;
- Permitting Cryptopia to take no steps in distributing certain cryptocurrencies that have low or no realisable value; and
- Permitting Cryptopia to take no steps to distribute cryptocurrency
to account holders who have an account balance of less than the costs of
the trust administration.
A brief initial hearing regarding the Distribution Application has
been set down for 31 August 2023. At this hearing there will be a
discussion about the steps leading to the full hearing of the
Distribution Application. We will provide another update once a date for
the full hearing has been set.
As part of the Distribution Application, the Court has already ordered the following:
- Peter Watts KC has been engaged as ‘amicus curiae’ (friend of the
court), which means he will assist the Court in providing arguments for
and against the liquidators’ proposed approach in the Distribution
Application; and
- Jenny Cooper KC has been engaged to represent the interests of all known and potential unsecured creditors of Cryptopia.
A copy of the Court documents can be found at the links below:
Distribution Application
Interlocutory application (representation and service)
Sale Application
The Court has made an order permitting us to convert NZ$5 million of
cryptocurrency to meet the reasonable cost and expenses of and
incidental to the protection, preservation, recovery, management, and
administration of the cryptocurrencies.
Link to Court Order.
Update on Claims Process
We continue to follow the claim process previously reported.
We continue to encourage claims registration and continue to send
reminder emails to those who are yet to engage. At the date of this
update, 84.7% 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.
We encourage all account holders who have not yet registered with the Claims Portal
to register, or for those that are partially through the process to
continue, to ensure the maximum number of account holders are able to
receive a distribution.
If you are having trouble with the Claims Portal, please raise a ticket through 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.
Asset transfer
Later in the year we will invite qualifying account holders to
provide us with their wallet address in preparation for a partial
distribution. We anticipate that the partial distribution will be made
to holders of BTC and DOGE over a certain value.
Further distributions of these and other cryptocurrencies will be
made after the Distribution Application has been decided by the Court.
Where to go for updates
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.
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