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Former Cryptopia Employee Stole More Than $ 170,000 Cryptocurrency

A former employee of the New Zealand bitcoin exchange Cryptopia, which is in the process of liquidation, has confessed to embezzling over $ 170,000 in cryptocurrency. This is reported by Stuff with reference to the court record.

According to the newspaper, the case was heard by the District Judge of Christchurch Allister Davis. The employee, whose name has not been released, pleaded guilty to two counts.

He said that while working at Cryptopia, he created copies of private keys from users’ wallets and saved them to a USB drive. Using a personal computer, the man withdrew a cryptocurrency worth 245,000 New Zealand dollars (~ $ 172,000).

The theft is not related to the January 2019 burglary. Then, as a result of the actions of hackers, the exchange lost up to 10% of all its funds – more than $ 17 million. User assets for $ 100 million were frozen.

In an effort to recoup the loss of customers, Cryptopia has initiated a liquidation process. The auditing company Grant Thornton was appointed liquidator, which in December 2020 began accepting applications for refunds from account holders.

Prior to this, Grant Thornton received a letter from one of her clients. He stated that he accidentally sent some bitcoins to an old deposit wallet at Cryptopia, and asked for a refund.

Experts checked a number of transactions and found that 13 BTC were withdrawn from such wallets, while 2 BTC of this amount was passed through bitcoin mixers. The total value of the cryptocurrency at the time of transactions was about 235,000 New Zealand dollars (~ $ 165,000).

Later it turned out that other digital assets in the amount of 10,000 New Zealand dollars (~ $ 7,000) were withdrawn in the same way.

Upon learning that Grant Thornton was checking the exchange’s old deposit wallets, a former Cryptopia employee contacted the auditing company and returned the stolen cryptocurrency.

He was released on bail pending a final decision on October 20.

In February 2021, hackers withdrew $ 45,000 worth of XSN tokens from Cryptopia’s cold wallet, which had not been used since the hack.

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