Analysts have calculated the extent of unauthorised cryptocurrency transfers at Christchurch-based Cryptopia at more than $23 million.

The principals of Cryptopia have made no public comments and could not be contacted.

A founder of the trading exchange, Rob Dawson, resigned as a director in July 2018 and was replaced by his father Pete Dawson who is retired but remains chairman of the local RSA where police outlined progress of their investigation to staff on Tuesday.

ADAM BRADLEY/STUFF Cryptopia co-founder Rob Dawson, left, leaves a meeting between staff and police.

Police have called on overseas experts and law enforcement authorities in their investigations and occupied the company's offices.

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After the Tuesday meeting with police, staff were escorted to their cars by security staff out of concerns for their welfare.

ADAM BRADLEY Detective inspector Greg Murton leaving the meeting with Cryptopia staff.

Cryptopia employed about 80 people, although how many were directly employed or were contractors remains unclear.

Analysis of what happened has been published by a blockchain software company based in New York called Elementus whose analyst, Max Galta, estimated the unauthorised transfers were valued about US$16m (NZ23m).

The transfers, but not the owners, were traceable because cryptocurrencies are contained in computer coded "wallets" that remain identifiable when traded on different cryptocurrency exchanges.

Elementus identified the currencies, their value, and the exchanges where they have been traded. Bitcoins were not involved, with the main cryptocurrencies being ethereum, oyster pearl, and dentacoin.

A local expert who spoke on condition of anonymity, said the theft involved someone knowing clients' digital wallet "key", or password. It was not a problem with security of blockchain software, the expert said.

The hacker or thief was only likely to be identified when trying to cash up, because they would have to use a mainstream bank, which must keep records of all normal cash transactions.

STUFF Police and Cryptopia staff at the offices on Colombo St, Christchurch following a hack where its believed millions of dollars of cryptocurrency was stolen.

"It's possible they may be able to cash up some of the smaller numbers of cryptocurrencies that have been transferred because they may escape notice. The trail might also be complicated if they have exchanged them for other cryptocurrencies.

"It's also possible they can never cash up for fear of being identified and the value of the coins will just sit there on an exchange, like shares in a company," the source said.

A similar situation happened last year after a security breach at an overseas exchange.

CHRIS HUTCHING/STUFF Christchurch-based Cryptopia co-founder Adam Clark.

The main question from analysts was how the hacker obtained the keys or passwords to traders' accounts, and why Cryptopia failed to act immediately by freezing all accounts and alerting authorities, because the transfers took place over several days.

Was it an inside job, or planned by overseas hackers, analysts have asked.

Christchurch lawyer Clive Cousins said he had been approached by several traders but he would have to wait until police concluded their investigation. The company might be placed in statutory management or liquidation depending on its cash reserves, he said.

There have been several significant changes at Cryptopia over the past two months, in addition to the changes at director level.

Troubleshooting chief executive Alan Booth left in late November.

A company called Intranel Consulting which has a 25 per cent shareholding in Cryptopia, and headed by Adam Lyness, carried out work on contract until late November.

In a statement, police said good progress was being made and positive lines of enquiry developed to identify the source of the transfer, and where the crypto-currencies have been sent.​

Police confirmed the unauthorised transfer of crypto-currency "worth a significant sum" took place on January 13 and 14.

Police asked anyone with information that could assist the investigation to make contact via a special email - crypto@police.govt.nz.

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