Crypto Exchange employee siphons Bitcoin, admits stealing private keys
A former employee of New Zealand-based cryptocurrency exchange Cryptopia said he stole around $ 177,000 in crypto from his employer.
The theft of digital assets came months after the exchange suffered a hack in January 2019, an event that resulted in the loss of cryptocurrencies valued at over $ 17.7 million, according to a report from the media outlet. New Zealand Stuff.
The ex-employee, whose identity was not disclosed, told Christchurch District Court that he obtained the private keys of the various cryptocurrency wallets held by Cryptopia and stored them in a key USB.
The employee claims to have compiled the private keys of thousands of wallets containing crypto assets worth over $ 70 million.
The theft began to unfold after an accounting firm conducted a review of wallets in an attempt to help a former Cryptopia client who mistakenly deposited Bitcoin into the old exchange’s wallet.
During the process, the company discovered that 13 Bitcoins had been stolen from the customer.
Eventually, the former employee sent an email stating that he had stolen the crypto and would return the assets in exchange for leniency.
The Christchurch District Court has now sentenced the former Cryptopia employee and will convict him in October.
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