A former employee of now-defunct cryptocurrency exchange, Cryptopia has been charged for stealing 250,000 NZD (appr. $167,000) worth of cryptocurrencies as well as customer information. The theft is unrelated to the $24 million hack that led up to the demise of Cryptopia but is a boost for victims who are hoping to get some of their money back.
According to a local news agency, Stuff.co, the former employee, has appeared in court twice for the alleged theft and is set for another court appearance next month. The stolen funds, meanwhile, has been returned to Cryptopia liquidators, Grant Thorton.
A police spokeswoman reportedly confirmed the charges against the unnamed man, adding that “the investigation in relation to [the Cryptopia] cyber intrusion is [still] ongoing.”
New Zealand-based Cryptopia was formerly the largest cryptocurrency exchange in the country by trading volume and had over 800,000 users with a balance on their accounts. The exchange held cryptocurrencies worth $113 million but ran into a crisis because of a security breach in January 2019.
Hackers supposedly stole $24 million from the exchange, roughly 15% of client assets, and Cryptopia was forced to declare bankruptcy since it couldn’t pay off the amount.
Following the appointment of Grant Thorton as Cryptopia’s liquidator, efforts have gotten underway to recoup losses. Aside from its debt to users, Cryptopia also reportedly owes $8 million to its creditors which includes the New Zealand Inland Revenue Service.
Cryptopia’s Hack Still Under Investigation
Authorities are still investigating the Cryptopia theft, which has negatively affected public trust in New Zealand’s emerging cryptocurrency ecosystem and put the country under the spotlight.
Detective Sergeant James Simpson noted that the case is peculiar to previous cybercrime incidents in the country and the Police are keeping an open mind regarding the masterminds.
“Is it internal? Is it an organised criminal group somewhere within New Zealand? Is it an international actor? It could be anyone,” he reportedly said.
Meanwhile, a favorable court ruling in July means that former Cryptopia users will receive up to half the amount they had on their balance before the hack. The remaining funds would go into the settling other of the exchange’s creditors.
