Cryptopia
From Wikipedia, the free encyclopedia
 | |
| Industry | Cryptocurrency |
|---|---|
| Founded | 2014 |
| Founder |
|
| Defunct | May 14, 2019 (in liquidation) |
| Fate | Liquidated |
| Headquarters | , New Zealand |
| Services | Cryptocurrency exchange, cryptocurrencies |
Number of employees | 100 (peak) |
| Website | www |
Cryptopia was an international cryptocurrency exchange based in Christchurch, New Zealand. Founded in 2014 by Rob Dawson and Adam Clark, it was among the earliest cryptocurrency services started in the country, and was responsible for launching the first stablecoin pegged to the New Zealand dollar. Cryptopia experienced substantial growth in 2017 from 30,000 users to over 1.4 million by 2018. At its peak in late 2010s, Cryptopia was one of the top 100 cryptocurrency exchanges by trading volume, reportedly outpacing that of the New Zealand Stock Exchange, and went on to operate in 900 currencies.
In early 2018, Cryptopia began experiencing issues due to its rapid growth, including internal friction among management, resignations, and subsequent allegations of a toxic workplace culture. The company temporarily suspended new account creation and froze trading in Dogecoin and Litecoin, claiming an inability to handle the influx of new trades and citing security concerns. Further, the NZDT stablecoin was put on hold after ASB Bank closed the accounts associated with it, halting deposits and forcing customers to withdraw remaining NZDT funds. Clark then resigned due to burnout and a deteriorating relationship with Dawson, including allegations by his wife that a Cryptopia staff member had sexually harassed her. Later that year, Dawson resigned after feeling forced out by the incoming CEO Alan Booth. Dawson appointed his own father as sole director, who negotiated Booth out of the company, enabling Dawson to return.
In January 2019, Cryptopia was the target of a high-profile theft resulting in the loss of approximately 10% of its cryptocurrency assets, then worth NZ$24M. The incident has been described as one of the biggest thefts in New Zealand history, and was widely reported by media outlets in New Zealand and cryptocurrency news outlets internationally.
In the months following the incident, Cryptopia continued operating but suffered a substantial drop in trading activity, with security concerns and unresolved losses souring public confidence in the exchange. In May 2019, the company began the process of liquidation. Due to the scale of the theft and the relative infancy of cryptocurrency law at the time, Cryptopia was subject to an expensive and drawn-out legal process to resolve its obligations to account holders who lost cryptocurrency in the theft, which is ongoing as of 2025. The first round of Bitcoin and Dogecoin distributions to victims began in December 2024, with more than 10,000 verified account holders refunded NZ$400M worth of cryptocurrency.
The Cryptopia theft incident was the catalyst for Ruscoe v. Cryptopia, in which the New Zealand High Court held that cryptocurrency is a form of property, marking the first time in a Commonwealth country where cryptocurrency has been legally challenged as such.
2014–2016: Founding and early years
Cryptopia was founded in Christchurch, New Zealand in 2014 by software developers Rob Dawson and Adam Clark. The pair had become friends after previously working at a different company, and started the project as a hobby, inspired by the negative experiences they had on other exchanges.[1][2]
In late 2016 the project become more serious, and Dawnson and Clark later decided to fully invest their savings and quit their jobs to focus on the company full-time.[1]
2017: NZDT stablecoin and rapid growth
In May 2017, Cryptopia announced it would issue the first stablecoin tethered to the New Zealand dollar. It was initially named NZed,[3] but was traded and popularly known as NZDT or 'New Zealand Dollar Token.' In 2018, trading of the token was put on hold after ASB Bank, who had been providing banking services to enable the coin, grew concerned about regulatory issues and an inability to verify account identity and activity. ASB proceeded to shutdown accounts, and Cryptopia users were instructed to withdraw their NZDT assets.[4]
Cryptopia had intended to resume NZDT trading in 2019, claiming they had secured the support of an unnamed smaller bank, and consulted with government and regulators on the project.[4]
In 2017, 25% of Cryptopia was acquired by Intranel, a tech and startup specialist that Clark had previously worked at. As part of the deal, the company expanded its development team and moved to a new premises.[5] The exchanged grew to approximately 1.4 million users by January 2018.[1] By the end of the year, Cryptopia had over 400 coins listed and traded over $1M in volume a day, which was substantial for the crypto market at the time.[6]
2018: growth issues and management disputes
Cryptopia activity reportedly outpaced the trade volume of the New Zealand Stock Exchange,[7] with the company operating in 900 currencies.[8] Later that year, the company opened an office in London for 24-hour service.[5] At its peak, Cryptopia had 100 employees including contractors.[9]
Dawson and Clark's relationship suffered during this time. Clark's wife, who worked at the company in customer support, alleged that a staff member close to Dawson had sexually harassed her by drawing penises on her car using a marker that could not be removed. She had also been resentful of Dawson's decisions regarding staff and salaries.[5] In February 2018, Clark was "burned out" and resigned from his directorship and job at Cryptopia, but retained shares.[5] The company appointed Alan Booth as their new chief executive,[10] who had formerly run the Canterbury Aero Club.[11]
In early 2018, Cryptopia froze Dogecoin and Litecoin trading. Later, users claimed over 100 markets had been disabled, with some threatening to start a class action lawsuit, prompting Booth to defend the company.[6][12]
In mid 2018, Booth advised Dawson to take a holiday to avoid burnout. Upon returning, Dawson discovered his salary had been stopped and his desk was replaced while he was away on a trip.[5] Dawson resigned, believing Booth and Intranel did not value his contribution. He appointed his father, Pete Dawson, as sole director, who conducted a review which found Booth was "ineffectual."[5] Booth left Cryptopia following a NZ$400,000 negotiation, and Dawson returned to the company.[5] Dawson later claimed Intranel had been destabilising the business, a claim which the company denied.[13][14]
In late 2018, American businessman John Gotts approached Cryptopia, interested in purchasing the exchange, describing it as "large but messy" and wanting to conform it to US standards for a wider international appeal.[5] Gotts proposal required Intranel be removed as contractors. In November, Dawson met with Intranel staff in a short meeting to tell them their services were no longer required. The decision prompted some Cryptopia staff to look for other jobs, and created a toxic atmosphere.[5] Before a deal was closed, Dawson's relationship with Gotts dissolved, after Gotts told staff they were "terrible" and would "all be sacked." A deal did not go through; Gotts threatened legal charges against Dawson, including extraditing him to the US, before relenting.[5] In February 2019, Gotts published an article on the "death of crypto."[5][15]
By the end of 2018, Cryptopia had experienced a drop in trading volume, but was still operating at a viable rate.[5]
