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{"actor":"system:backfill","investigation_id":"9d5d3f01-2e58-48f7-9872-d8e9d3535802","kind":"publish","page_slug":"cryptopia","published_at":"2026-05-30T12:57:23.431Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Cryptopia","sections":[{"content":"","heading":"Background and Operations","severity":"low","sources":[{"credibility":2,"name":"Cryptopia — Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/Cryptopia"},{"credibility":2,"name":"How New Zealand company Cryptopia lost over $20 million from a hack — The Spinoff","type":"news_article","url":"https://thespinoff.co.nz/business/28-05-2019/how-new-zealand-company-cryptopia-lost-over-20-million-from-a-hack"},{"credibility":2,"name":"Cryptopia cofounder stands by new venture — NZ Herald","type":"news_article","url":"https://www.nzherald.co.nz/business/cryptopia-cofounder-stands-by-new-venture-says-failed-company-was-like-game-of-thrones/4GW6KN7BIAEGFNNTDTWMX7YEUQ/"}]},{"content":"","heading":"January 2019 Security Breach","severity":"critical","sources":[{"credibility":2,"name":"Hacked Exchange Cryptopia Discloses Estimate of Stolen Crypto — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2019/02/27/hacked-exchange-cryptopia-discloses-estimate-of-stolen-crypto"},{"credibility":2,"name":"The Cryptopia Hackers Are Moving Funds Into at Least Four Wallets — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2019/05/20/the-cryptopia-hackers-are-moving-funds-into-at-least-four-wallets"},{"credibility":2,"name":"New Zealand police, FBI investigating Christchurch's Cryptopia hack — Newshub","type":"news_article","url":"https://www.newshub.co.nz/home/new-zealand/2019/02/new-zealand-police-fbi-investigating-christchurch-s-cryptopia-hack.html"},{"credibility":2,"name":"Crypto Exchange Cryptopia Loses 16 Million in a Hack — Cryptopolitan","type":"news_article","url":"https://www.cryptopolitan.com/crypto-exchange-cryptopia-loses-16-million-in-a-hack/"},{"credibility":2,"name":"Analysis: Hackers Liquidated $3.2 Million in Tokens From Cryptopia Hack — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/analysis-hackers-liquidated-32-million-in-tokens-from-cryptopia-hack"}]},{"content":"","heading":"Liquidation and Insolvency Proceedings","severity":"high","sources":[{"credibility":2,"name":"Hacked Crypto Exchange Cryptopia Files for US Bankruptcy Protection — CoinDesk","type":"court_filing","url":"https://www.coindesk.com/markets/2019/05/27/hacked-crypto-exchange-cryptopia-files-for-us-bankruptcy-protection"},{"credibility":2,"name":"New Zealand Crypto Exchange Seeks Chapter 15 Bankruptcy Protection — Hunton","type":"news_article","url":"https://www.hunton.com/blockchain-legal-resource/new-zealand-crypto-exchange-seeks-chapter-15-bankruptcy-protection-in-the-united-states"},{"credibility":1,"name":"Cryptopia obtains Chapter 15 recognition — Davis Polk","type":"other","url":"https://www.davispolk.com/experience/cryptopia-obtains-chapter-15-recognition-new-zealand-liquidation-proceedings"},{"credibility":1,"name":"Cryptopia Limited — Grant Thornton New Zealand (official liquidator updates)","type":"official","url":"https://www.grantthornton.co.nz/cryptopia/cryptopia-updates/"},{"credibility":1,"name":"Liquidators' 14th Report to Shareholders and Creditors — Grant Thornton NZ","type":"official","url":"https://www.grantthornton.co.nz/globalassets/1.-member-firms/new-zealand/pdfs/cryptopia/14th-liquidators-report_cryptopia_dec25_final.pdf"},{"credibility":1,"name":"New Zealand Crypto Firm Hacked to Death, Seeks U.S. Bankruptcy — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2019-05-24/new-zealand-crypto-firm-hacked-to-death-seeks-u-s-bankruptcy"}]},{"content":"","heading":"Landmark Legal Ruling: Cryptocurrency as Property Held on Trust","severity":"medium","sources":[{"credibility":1,"name":"Ruscoe v Cryptopia Ltd (In Liquidation) [2020] NZHC 728 — Full Judgment (Grant Thornton PDF)","type":"court_filing","url":"https://www.grantthornton.co.nz/globalassets/1.-member-firms/new-zealand/pdfs/cryptopia/civ-2019-409-000544---ruscoe-and-moore-v-cryptopia-limited-in-liquidation.pdf"},{"credibility":1,"name":"Cryptocurrencies are property capable of being held on trust — Norton Rose Fulbright","type":"research","url":"https://www.nortonrosefulbright.com/en/knowledge/publications/d6ea37bd/cryptocurrencies-are-property-capable-of-being-held-on-trust-new-zealand-high-court-holds"},{"credibility":2,"name":"Cryptopia Users Win Victory in Court Case Over Crypto Assets Worth Over $100M — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2020/04/08/cryptopia-users-win-victory-in-court-case-over-crypto-assets-worth-over-100m"},{"credibility":1,"name":"Growing Body of Common Law Decisions on Cryptocurrency as Property — Herbert Smith Freehills","type":"research","url":"https://www.hsfkramer.com/notes/pwtd/2020-05/growing-body-of-common-law-decisions-that-cryptocurrencies-can-amount-to-property-ruscoe-v-cryptopia-limited-in-liquidation-civ-2019-409-000544-2020-nzhc-728"},{"credibility":1,"name":"NZ High Court issues landmark judgment on cryptocurrency as property — Lexology","type":"research","url":"https://www.lexology.com/library/detail.aspx?g=1aff5dd2-7428-4697-b89f-e1e07fb73a2d"},{"credibility":1,"name":"Digital Assets as Property: NZ High Court's Cryptopia judgement — Piper Alderman","type":"research","url":"https://piperalderman.com.au/insight/digital-assets-as-property-nz-high-courts-cryptopia-judgement/"}]},{"content":"","heading":"Second Hack During Liquidation (2021)","severity":"high","sources":[{"credibility":2,"name":"Cryptopia Exchange, Currently in Liquidation, Gets Hacked Again — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2021/02/20/cryptopia-exchange-currently-in-liquidation-gets-hacked-again-report"},{"credibility":2,"name":"Troubled NZ Crypto Exchange Cryptopia Suffers Another Hack in the Midst of Liquidation — Bitcoin News","type":"news_article","url":"https://news.bitcoin.com/troubled-nz-crypto-exchange-cryptopia-suffers-another-hack-in-the-midst-of-liquidation-process/"},{"credibility":2,"name":"Cryptopia Exchange, Currently in Liquidation, Gets Hacked Again — Nasdaq","type":"news_article","url":"https://www.nasdaq.com/articles/cryptopia-exchange-currently-in-liquidation-gets-hacked-again:-report-2021-02-20"}]},{"content":"","heading":"Insider Theft by Former Employee (2021)","severity":"high","sources":[{"credibility":2,"name":"Ex-Cryptopia Employee Pleads Guilty to Stealing $170K in Crypto — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2021/07/05/ex-cryptopia-employee-pleads-guilty-to-stealing-170k-in-crypto"},{"credibility":2,"name":"Your keys, his coins — Cryptopia employee admits to stealing $172K in crypto — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/your-keys-his-coins-cryptopia-employee-admits-to-stealing-172k-in-crypto"},{"credibility":2,"name":"Ex-Cryptopia Employee Pleads Guilty to Stealing $170K in Crypto — Nasdaq","type":"news_article","url":"https://www.nasdaq.com/articles/ex-cryptopia-employee-pleads-guilty-to-stealing-$170k-in-crypto-2021-07-04"},{"credibility":2,"name":"Ex-Cryptopia Employee Admits to Stealing $170,000 — Decrypt","type":"news_article","url":"https://decrypt.co/75271/ex-cryptopia-employee-admits-stealing-170000-exchange"}]},{"content":"","heading":"Asset Recovery and Distributions","severity":"medium","sources":[{"credibility":1,"name":"Cryptopia account holders receive $400m from liquidators — Grant Thornton NZ","type":"official","url":"https://www.grantthornton.co.nz/press/press-releases-2024/cryptopia-account-holders-receive-$400m-from-liquidators/"},{"credibility":2,"name":"Cryptopia Hack: Liquidators Distribute $225 Million in Crypto to Victims — Brave New Coin","type":"news_article","url":"https://bravenewcoin.com/insights/cryptopia-hack-liquidators-distribute-225-million-in-crypto-to-victims"},{"credibility":2,"name":"Bankrupt Cryptopia Exchange to Return Crypto to Some Creditors — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2024/03/08/bankrupt-cryptopia-exchange-to-return-crypto-to-some-creditors"},{"credibility":2,"name":"New Zealand's Cryptopia pays back $225m to account holders after liquidation — crypto.news","type":"news_article","url":"https://crypto.news/new-zealands-cryptopia-pays-back-225m-to-account-holders-after-liquidation/"},{"credibility":2,"name":"To Dystopia and back as Cryptopia returns $400m in crypto to creditors — Bits of Blocks","type":"news_article","url":"https://www.bitsofblocks.io/post/to-dystopia-and-back-as-cryptopia-returns-400m-in-crypto-to-creditors"},{"credibility":1,"name":"Liquidators' 14th Report to Shareholders and Creditors — Grant Thornton NZ (PDF)","type":"official","url":"https://www.grantthornton.co.nz/globalassets/1.-member-firms/new-zealand/pdfs/cryptopia/14th-liquidators-report_cryptopia_dec25_final.pdf"}]}],"sources_used":[{"credibility":2,"name":"Cryptopia — Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/Cryptopia"},{"credibility":2,"name":"Hacked Exchange Cryptopia Discloses Estimate of Stolen Crypto — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2019/02/27/hacked-exchange-cryptopia-discloses-estimate-of-stolen-crypto"},{"credibility":2,"name":"The Cryptopia Hackers Are Moving Funds Into at Least Four Wallets — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2019/05/20/the-cryptopia-hackers-are-moving-funds-into-at-least-four-wallets"},{"credibility":1,"name":"New Zealand Crypto Firm Hacked to Death, Seeks U.S. Bankruptcy — Bloomberg","type":"news_article","url":"https://www.bloomberg.com/news/articles/2019-05-24/new-zealand-crypto-firm-hacked-to-death-seeks-u-s-bankruptcy"},{"credibility":2,"name":"Hacked Crypto Exchange Cryptopia Files for US Bankruptcy Protection — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2019/05/27/hacked-crypto-exchange-cryptopia-files-for-us-bankruptcy-protection"},{"credibility":1,"name":"Cryptopia Limited — Grant Thornton New Zealand (official liquidator updates)","type":"official","url":"https://www.grantthornton.co.nz/cryptopia/cryptopia-updates/"},{"credibility":1,"name":"Cryptopia account holders receive $400m from liquidators — Grant Thornton NZ","type":"official","url":"https://www.grantthornton.co.nz/press/press-releases-2024/cryptopia-account-holders-receive-$400m-from-liquidators/"},{"credibility":1,"name":"Liquidators' 14th Report — Grant Thornton NZ (PDF)","type":"official","url":"https://www.grantthornton.co.nz/globalassets/1.-member-firms/new-zealand/pdfs/cryptopia/14th-liquidators-report_cryptopia_dec25_final.pdf"},{"credibility":1,"name":"Ruscoe v Cryptopia Ltd (In Liquidation) [2020] NZHC 728 — Full Judgment PDF","type":"court_filing","url":"https://www.grantthornton.co.nz/globalassets/1.-member-firms/new-zealand/pdfs/cryptopia/civ-2019-409-000544---ruscoe-and-moore-v-cryptopia-limited-in-liquidation.pdf"},{"credibility":1,"name":"Cryptocurrencies are property capable of being held on trust — Norton Rose Fulbright","type":"research","url":"https://www.nortonrosefulbright.com/en/knowledge/publications/d6ea37bd/cryptocurrencies-are-property-capable-of-being-held-on-trust-new-zealand-high-court-holds"},{"credibility":1,"name":"Growing Body of Common Law Decisions — Herbert Smith Freehills","type":"research","url":"https://www.hsfkramer.com/notes/pwtd/2020-05/growing-body-of-common-law-decisions-that-cryptocurrencies-can-amount-to-property-ruscoe-v-cryptopia-limited-in-liquidation-civ-2019-409-000544-2020-nzhc-728"},{"credibility":2,"name":"Cryptopia Users Win Victory in Court Case Over Crypto Assets Worth Over $100M — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2020/04/08/cryptopia-users-win-victory-in-court-case-over-crypto-assets-worth-over-100m"},{"credibility":2,"name":"Cryptopia Exchange, Currently in Liquidation, Gets Hacked Again — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2021/02/20/cryptopia-exchange-currently-in-liquidation-gets-hacked-again-report"},{"credibility":2,"name":"Ex-Cryptopia Employee Pleads Guilty to Stealing $170K in Crypto — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2021/07/05/ex-cryptopia-employee-pleads-guilty-to-stealing-170k-in-crypto"},{"credibility":2,"name":"Your keys, his coins — Cryptopia employee admits to stealing $172K — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/your-keys-his-coins-cryptopia-employee-admits-to-stealing-172k-in-crypto"},{"credibility":2,"name":"Bankrupt Cryptopia Exchange to Return Crypto to Some Creditors — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2024/03/08/bankrupt-cryptopia-exchange-to-return-crypto-to-some-creditors"},{"credibility":1,"name":"Cryptopia obtains Chapter 15 recognition — Davis Polk","type":"other","url":"https://www.davispolk.com/experience/cryptopia-obtains-chapter-15-recognition-new-zealand-liquidation-proceedings"},{"credibility":2,"name":"New Zealand police, FBI investigating Cryptopia hack — Newshub","type":"news_article","url":"https://www.newshub.co.nz/home/new-zealand/2019/02/new-zealand-police-fbi-investigating-christchurch-s-cryptopia-hack.html"},{"credibility":2,"name":"How New Zealand company Cryptopia lost over $20 million from a hack — The Spinoff","type":"news_article","url":"https://thespinoff.co.nz/business/28-05-2019/how-new-zealand-company-cryptopia-lost-over-20-million-from-a-hack"},{"credibility":1,"name":"Digital Assets as Property: NZ High Court's Cryptopia judgement — Piper Alderman","type":"research","url":"https://piperalderman.com.au/insight/digital-assets-as-property-nz-high-courts-cryptopia-judgement/"},{"credibility":2,"name":"Ex-Cryptopia Employee Admits to Stealing $170,000 — Decrypt","type":"news_article","url":"https://decrypt.co/75271/ex-cryptopia-employee-admits-stealing-170000-exchange"}],"summary":"Cryptopia was a New Zealand-based cryptocurrency exchange founded in 2014 in Christchurch that grew to over 1.4 million users before suffering a critical security breach in January 2019 in which approximately NZ$24 million (roughly USD $16 million) in Ethereum and ERC-20 tokens was stolen. The hack rendered the company insolvent, leading to its placement into liquidation in May 2019 under Grant Thornton New Zealand as appointed liquidators. The resulting legal proceedings produced a landmark 2020 High Court ruling — Ruscoe v Cryptopia Limited (In Liquidation) [2020] NZHC 728 — establishing that cryptocurrencies are intangible property capable of being held on trust under common law.","timeline":[{"date":"2014-01-01","event":"Cryptopia founded in Christchurch, New Zealand by Rob Dawson and Adam Clark as a hobby project.","source":"Wikipedia / NZ Herald","source_url":"https://en.wikipedia.org/wiki/Cryptopia"},{"date":"2016-01-01","event":"Cryptopia transitions from hobby to full-time venture; founders invest personal savings and quit day jobs.","source":"NZ Herald","source_url":"https://www.nzherald.co.nz/business/cryptopia-cofounder-stands-by-new-venture-says-failed-company-was-like-game-of-thrones/4GW6KN7BIAEGFNNTDTWMX7YEUQ/"},{"date":"2017-12-01","event":"Cryptopia user base surges from approximately 30,000 to over 1.4 million accounts during the cryptocurrency bull market.","source":"Wikipedia","source_url":"https://en.wikipedia.org/wiki/Cryptopia"},{"date":"2018-01-01","event":"Cryptopia temporarily suspends new account creation amid reports of internal management friction and toxic workplace culture.","source":"Wikipedia","source_url":"https://en.wikipedia.org/wiki/Cryptopia"},{"date":"2019-01-14","event":"Cryptopia detects unauthorized access; exchange taken offline. Attackers gain control of private keys stored on a central server.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2019/02/27/hacked-exchange-cryptopia-discloses-estimate-of-stolen-crypto"},{"date":"2019-01-28","event":"Secondary theft detected: 1,675 Ether drained from approximately 17,000 additional wallets while the exchange remains offline.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2019/02/27/hacked-exchange-cryptopia-discloses-estimate-of-stolen-crypto"},{"date":"2019-02-07","event":"New Zealand Police announce investigation progress; FBI involvement confirmed.","source":"Newshub","source_url":"https://www.newshub.co.nz/home/new-zealand/2019/02/new-zealand-police-fbi-investigating-christchurch-s-cryptopia-hack.html"},{"date":"2019-02-27","event":"Cryptopia publicly discloses that approximately 9.4% of total holdings (est. NZ$24M / USD $16M) was stolen.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2019/02/27/hacked-exchange-cryptopia-discloses-estimate-of-stolen-crypto"},{"date":"2019-05-14","event":"Cryptopia shareholders vote to place the company into liquidation; David Ruscoe and Russell Moore of Grant Thornton NZ appointed as joint liquidators.","source":"Grant Thornton NZ","source_url":"https://www.grantthornton.co.nz/cryptopia/cryptopia-updates/"},{"date":"2019-05-24","event":"Liquidators file Chapter 15 petition in the Southern District of New York (Case No. 19-11688-smb) to protect U.S.-hosted data assets.","source":"CoinDesk / Hunton","source_url":"https://www.coindesk.com/markets/2019/05/27/hacked-crypto-exchange-cryptopia-files-for-us-bankruptcy-protection"},{"date":"2019-06-24","event":"Judge Stuart M. Bernstein grants Chapter 15 recognition of the New Zealand liquidation proceeding.","source":"Davis Polk","source_url":"https://www.davispolk.com/experience/cryptopia-obtains-chapter-15-recognition-new-zealand-liquidation-proceedings"},{"date":"2020-04-08","event":"New Zealand High Court delivers landmark judgment in Ruscoe and Moore v Cryptopia Limited (In Liquidation) [2020] NZHC 728, ruling that cryptocurrencies are intangible property held on trust for account holders.","source":"NZ High Court / Grant Thornton NZ","source_url":"https://www.grantthornton.co.nz/globalassets/1.-member-firms/new-zealand/pdfs/cryptopia/civ-2019-409-000544---ruscoe-and-moore-v-cryptopia-limited-in-liquidation.pdf"},{"date":"2021-02-01","event":"Second hack detected during liquidation: approximately NZ$62,000 (USD $45,000) in XSN (Stakenet) transferred from an inactive cold wallet without liquidator authorization.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2021/02/20/cryptopia-exchange-currently-in-liquidation-gets-hacked-again-report"},{"date":"2021-07-05","event":"Former Cryptopia employee pleads guilty to stealing approximately NZ$248,000 (USD $172,000) in Bitcoin and other crypto using private keys copied to a USB drive.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2021/07/05/ex-cryptopia-employee-pleads-guilty-to-stealing-170k-in-crypto"},{"date":"2024-03-08","event":"Grant Thornton announces commencement of first distribution round for verified Bitcoin and Dogecoin account holders.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2024/03/08/bankrupt-cryptopia-exchange-to-return-crypto-to-some-creditors"},{"date":"2024-12-20","event":"Grant Thornton announces distribution of NZ$400 million (USD $225 million) to more than 10,000 verified account holders, representing approximately 85–90% recovery of 2019-era balances.","source":"Grant Thornton NZ","source_url":"https://www.grantthornton.co.nz/press/press-releases-2024/cryptopia-account-holders-receive-$400m-from-liquidators/"},{"date":"2025-12-01","event":"Grant Thornton files 14th Liquidators' Report; liquidation and recovery proceedings remain ongoing.","source":"Grant Thornton NZ","source_url":"https://www.grantthornton.co.nz/globalassets/1.-member-firms/new-zealand/pdfs/cryptopia/14th-liquidators-report_cryptopia_dec25_final.pdf"}]},"v":1}