Former Cryptopia Exchange Employee Confessed To Stealing $170,000 Cryptocurrencies

One of the employees of the Cryptopia crypto exchange declared guilty to embezzlement $170,000 in digital currency equivalent.

The ex-employee admitted that he used Cryptopia's secret keys by copying and uploading them to his flash drive. Thanks to the keys, he gained access to assets worth more than $100 million. Subsequently, from his personal computer, the attacker stole digital currencies of 245,000 NZD (about $171,900).

At its top, the now defunct Cryptopia exchange attracted more than 1.5M consumers worldwide, and its staff consisted of 80 people. However, after the hack in 2019, which became catastrophic for the trading platform, it soon ceased to exist and is now conducting a liquidation procedure.

The consequence of the hacking and theft of $17 million in the equivalent of Ethereum tokens was the freezing of client accounts holding more than $100M in total at the current exchange rate. After that, the management decided to liquidate the company to be able to pay compensation to users hit by the actions of hackers.

During the liquidation of the Cryptopia, auditor Grant Thornton discovered a letter from one of its clients. He said that by mistake he sent a certain amount of BTC to the exchange wallet, asking for them to be returned. But when employees of the firm traced the transactions carried out earlier, it was noticed that someone had transferred 13 BTC from the exchange wallets. Of these, 2 BTC were "passed" through the cryptocurrency mixer to hide them from "prying eyes". By that time, the amount of the loss was more than $165,000. A little later it turned out that in addition to this amount, other crypto assets were withdrawn from BTC, equivalent to 10,000 NZD or $7,000.

Following the Cryptopia employee, who had stolen funds from the exchange's wallets, received about the audit of the auditors, he returned them, having previously contacted the firm to confess to the theft. As a result, he was released on bail pending the announcement of the final decision in the case on October 20, 2021.

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