Conspiracy theory? ‘Former developer’ claims Cryptopia’s January hack was a cover-up for fraudulent activities

  • 20 July 2019, Saturday, 15:40

Nothing draws attention to the cryptocurrency space as controversy does. 2019 has been very newsworthy in this regard, with the case of New Zealand-based Cryptopia starting the year off. The cryptocurrency exchange reported a massive hack in January, where over $16 million worth of tokens were stolen.

Now, there is a new twist to the tale after a “former Cryptopia developer” alleged that the hack might have been a product of a lot of fraudulent activities accumulating months before the hack in January 2019.

Twitter user @notsofast, who claims to be a former Cryptopia developer, released an article link that presented the “hostile takeover” of the exchange by Intranel.

Vcdragon, the author of the steemit post, stated that he and “Adam” started work on the exchange way back in January 2014. Adam was working full-time at Intranel as a developer at that time and Vcdragon was working solely on their Cryptopia exchange project.

Adam eventually resigned and Vcdragon said,

“Adam resigned from Intranel, but they said they didn’t want to lose him and wanted to keep an eye on us so they offered a room in their office for rent, which we would pay for by Adam doing sprint code work for Intranel, and when they didn’t have work for them they charged us cash.”

He added that back in 2017, when the exchange started to “exponentially” grow, Intranel’s interest started to increase and both of them [Adam and the developer] contemplated taking Intranel’s help for the business part of the exchange.

He said,

“Intranel made us an offer that for 20% of the company they would handle all of the business management and development things like helping with hiring and managing staff, paying tax, lobbying for regulator guidance and all the ‘boring’ business stuff.”

Things started to take a bad turn after that, according to Vcdragon, who alleged that Intranel was hiring staff for themselves and assigning new employees to the Cryptopia Founders at a higher price. When the exchange started to become dependent on new staff members, they were again charged an extra 5% equity.

One thing led to another and Adam resigned, followed by Vcdragon being “replaced in the office” after he had taken an “unpaid” month holiday.

In their absence, the developer alleged that Intranel completed depleting Cryptopia’s resources and carefully made it a part of their own company under ownership.

Vcdragon went on to claim,

“They bled money everywhere they could, we paid for tax on their staff’s flu shots? We paid taxes on Christmas fits to their staff and our company bought the gifts. Everything they were unable to take for themselves they pissed into the wind on needless expenses and luxuries to the company could not afford….that ultimately buried us.”

Vcdragon explained that back in November 2018, the possibility of Cryptopia going bankrupt was extremely high, if Intranel was not removed from the company.

While Vcdragon himself claimed to have no knowledge of the hack in January, he speculated that the hack might have been orchestrated by Intranel to hide everything that was done during their time with the exchange.

He said,

“I believe the Hack was orchestrated to bury everything they have done, and was planned to happen before we removed them so that it could tidily explain the state they had gotten the company into. And then rushed after their plan was interrupted when they were forcibly removed from the company.”

It should be noted that the veracity of these claims is yet to be suitably verified.

Source: ambcrypto.com