China will most probably continue with their strict regulatory stance regarding cryptocurrency upon the news of the size of the latest crypto heist. The latest crime involves blockchain thieves stealing around $87 million.
The Chinese media has confirmed three individuals connected to the theft have been arrested thus far. The Chinese police revealed some insight on the matter stating, “Our bureau has not dealt with this kind of case before. It’s the first virtual currency-related case in Shaanxi.”
The police were notified about the cryptocurrency theft when a complaint was lodged by a victim whose computer was hacked which resulted in the theft of cryptocurrencies such as Bitcoin and Ethereum. The theft from the complaint alone was worth 100 million yuan which is equal to about $15 million.
How did the hackers accomplish this notorious crime? The task force that was investigating the theft reported that remote hijacking techniques were used to gain access to cryptocurrency accounts from the victim.
Right out of a Hollywood movie, the suspect was traced and stalked for two months. In the two months of investigation, the suspect named Zhou was seen to be communicating with two others frequently.
Such crimes are not going to help the already tight regulations of cryptocurrency being banned in China. Other notorious crimes related to cryptocurrency in China include – Crypto jacking and the stealing of power for cryptocurrency mining rigs.
Back in December of 2017, CNBC interviewed A10 Network’s founder and chief executive, Lee Chen. In the interview, he claimed that 2018 would result in major hacks.
“I think the digital transformation is the underlying motivation for hackers … So expect the frequency, the size, the volume of hacks to continue to increase in 2018,” Chen told CNBC.
Lee Chen was right, 2018 has been a horrible year so far with several hacks linked to cryptocurrencies from China alone.
One of the most highlighted cases was in June this year when a malware developed by Chinese was able to mine Siacoin cryptocurrency. The malware was injected into more than 100,000 computers in internet cafes spread across 30 cities in China. A reported 5 million yuan which is equal to $800,000 was stolen.
China’s Central Bank reported in July that Bitcoin trading in the Chinese currency, the renminbi (RMB) was less than 1% of the world’s total.
It looks like the Chinese ban on cryptocurrency is successful concerning controlling Chinese traders. However, the sheer presence of lurking hackers dominating the cryptocurrency sphere seems to be an unstoppable threat at this moment in time.
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