So far, liquidators distributed $225 million worth of Bitcoin and Dogecoin to verified account holders. Meanwhile, Coinbase Advanced experienced impressive growth in 2024, with trading volumes surging by 191% due to rising derivatives interest, but still faced criticism for delisting Wrapped Bitcoin over its alleged ties to Justin Sun. Binance.US is also making strides, and announced plans to restore USD services in 2025. Cryptopia’s Long-Awaited User Reimbursements Underway The liquidators of the now-defunct crypto exchange Cryptopia started the distribution of funds to users who were affected by a major hack that happened nearly six years ago. On Dec. 20, Grant Thornton , the firm overseeing Cryptopia’s liquidation, announced that over 10,000 verified account holders started receiving payouts. These distributions consist of Bitcoin (BTC) and Dogecoin (DOGE), totaling approximately 400 million New Zealand dollars ($225 million). This is a major step forward in the liquidation process, which began in 2020 with the establishment of the Cryptopia claims portal . While this initial payout is very large, Grant Thornton stated that even more distributions are planned. The firm will follow an approved process, including setting cut-off dates, before distributing the remaining funds to account holders. There is also the possibility of additional ”top-up” distributions, which could allow users to receive up to 100% of their holdings by reallocating unclaimed funds from those who have not registered on the claims portal. Grant Thornton urged any of the remaining Cryptopia account holders to complete the registration process to qualify for future distributions. The liquidators also confirmed that additional distributions for some of the newly verified users are expected to take place in the coming year. Cryptopia was founded in 2014, and was once a major international cryptocurrency exchange based in New Zealand. It boasted 1.4 million registered users at its peak in 2018. It was also a pioneer in the country’s crypto ecosystem after launching the NZD-backed stablecoin NZDT in 2017. However, the exchange suffered a catastrophic hack in January of 2019, which resulted in the loss of an estimated $16 million in crypto assets. Shortly after, Cryptopia entered liquidation, and Grant Thornton reported that the exchange owed $4.2 million to its creditors. Coinbase Advanced Trading Volumes Soar in 2024 Things are going a lot better for some other crypto exchanges. Coinbase Advanced, the professional trading platform offered by Coinbase, experienced remarkable growth in 2024. The platform recorded a 191% increase in trading volumes and a 77% rise in user numbers. The growth was likely fueled by surging interest in derivatives trading. In fact, derivatives volumes saw an unprecedented 10,950% increase this year. Coinbase’s derivatives platform was launched in 2022, and has become a big driver of growth by offering cryptocurrency futures like nano Bitcoin and nano Ethereum contracts to its U.S. users. The platform also lists futures tied to meme coins like Dogecoin and Shiba Inu (SHIB), alongside commodities like oil and gold. The broader crypto derivatives market also saw exponential growth, with monthly trading volumes surpassing $3 trillion in September, according to CCData. These futures contracts allow traders to hedge and speculate with leverage, which helped boost their popularity. In addition to derivatives, spot trading activity on Coinbase Advanced grew by 47% in 2024, buoyed by optimistic market sentiment after Donald Trump’s U.S. presidential election victory and the addition of new tokens. Coinbase plans to offer more tokens under the new administration, including smaller tokens and meme coins, according to Tom Duff Gordon. Some of its most recent listings include meme coins like Moodeng (MOODENG), Mog (MOG), and Dogwifhat (WIF). Coinbase stock price over the past month (Source: Google Finance ) Coinbase’s growth also reflected in its stock performance , which surged past $300 in November for the first time since 2021. However, the stock has since pulled back to around $280 based on data from Google Finance. Crypto Community Criticizes Coinbase Along with its success, Coinbase also recently faced some backlash. The crypto community strongly criticised Coinbase after its explanation for delisting Wrapped Bitcoin (wBTC), and blaming it on the risks associated with Tron founder Justin Sun. Coinbase filed its response to a lawsuit from BiT Global, which is a Sun-affiliated entity, and accused the exchange of harming the wBTC market by removing the token in November. In its filing, Coinbase attributed its decision to allegations of financial misconduct and ongoing regulatory investigations involving Sun. The crypto community argued that Coinbase’s reasoning lacks legal and technical justification, and some even accused the exchange of engaging in “guilt by association.” Bitcoin advocate and Coinbase skeptic Pledditor believes the filing reflects personal animosity toward Sun, and does not address the actual merits of the case. Coinbase pointed to Sun’s alleged violations of industry and government standards, including accusations of fraud and securities law violations. These claims stem from charges that were filed against Sun by the U.S. SEC in March of 2023 and additional investigations by federal authorities. The criticism of Coinbase’s actions also drew attention to its own legal challenges. VanEck adviser Gabor Gurbacs , pointed out the irony of Coinbase questioning Sun’s reputation while facing numerous investigations itself. In June of 2023, the SEC sued Coinbase for allegedly offering unregistered securities. Earlier in the year, Coinbase also settled with the New York Department of Financial Services for $100 million over compliance issues. Binance.US Plans Major Revival Binance.US, the United States-based subsidiary of the global crypto exchange Binance, announced plans to resume U.S. dollar services in early 2025. This is a big step for the exchange as it plans to rebuild its presence in the U.S. market. Interim CEO Norman Reed shared the update in a blog post on Dec. 18. Reed stated that Binance.US is closer than ever to restoring USD services and believes 2025 will be a pivotal year for the exchange. He also mentioned plans for new product releases and strategic partnerships to enhance the platform’s infrastructure, including expanded custody offerings and improved wallet solutions. Reed is optimistic about the future, and invited users to participate in what he described as a comeback story for the ages. This announcement was made after comments from Binance CEO Richard Teng earlier in December, where he said it was too early to discuss whether Binance might fully re-establish operations in the United States. Despite past challenges, Binance.US is still focused on offering competitive features, including 0% fee trading for BTC/USDC and support for 160 cryptocurrencies alongside staking for over 20 cryptos. Binance.US initially launched in 2019 to provide regulated crypto trading services in the United States. However, the platform faced hurdles in 2023, beginning with a lawsuit from the SEC in June. The SEC accused Binance of failing to register Binance.US as an exchange, which led to the suspension of USD deposits. By October, Binance.US declared its transition to a crypto-only exchange after updating its terms of service. In November of 2023, Binance reached a $4.3 million settlement with the U.S. government over allegations of sanctions violations, money laundering, and operating as an unlicensed money transmitter. As part of the settlement, Binance committed to exiting the U.S. market entirely and ensuring compliance with regulatory standards. Despite these setbacks, Binance.US is determined to make a strong return.
