Ex-Cryptopia Employee Admits to Stealing $170K Worth Of Crypto

An ex-employee of the now-defunct crypto exchange Cryptopia has admitted in court to stealing crypto worth about $170,000. The employee pled guilty to stealing coins and customer data while he worked at Cryptopia when the company was still up and running.

A name suppression by the Christchurch district court of New Zealand keeps the employee anonymous for the time being. The employee pled guilty to two crimes, namely; theft by a person in a special relationship and theft of more than $1,000.

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The crime was brought to light in 2020 due to complaints from a customer that he had deposited coins into a Cryptopia wallet by mistake. Cryptopia has been through a series of problems in the past. Which is what led to its now-defunct state. The company finally collapsed in 2019.

Cryptopia Hacks

Cryptopia suffered two devastating hacks that eventually led to it shutting down in 2019. The company was hacked at the beginning of 2021 in January when a hack led to the theft of over 19,000 Ethereum. The crypto was transferred into an unknown wallet. The value of the crypto at the time of the hack in 2019 was $2.3 million. At this point, Cryptopia was serving a global customer base of 1.8 million customers.

Crypto subsequently went into liquidation that year and began the process of shutting down the exchange and mapping out ways for users to get their crypto back.

Bitcoin price chart from TradingView.com

Bitcoin price loses momentum as it falls back into $33K range | Source: BTCUSD on TradingView.com

Later that year though, the company fell victim to another hack. This time losing about $15 million worth of crypto to the attackers. The hack happened during the liquidation. Somehow attackers were able to access a wallet that had not fallen victim to the hack and transfer the crypto out of that wallet to an unknown wallet. This hack represented about 15% of the company’s holdings of digital assets.

During the liquidation, employees…

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