Chinese police arrest four former Huobi employees involved in a significant crypto theft, highlighting the ongoing challenges in securing digital assets.
Points
- Chinese police arrest four former Huobi employees for crypto theft.
- Over 40,000 user reminder codes and private keys stolen using Trojan horse viruses.
- Theft occurred before Justin Sun’s acquisition of Huobi.
- Defendants sentenced to three years in prison and fined 30,000 yuan.
- Case underscores the importance of security in the crypto industry.
In a recent crackdown on cryptocurrency theft, Chinese police have arrested four former employees of Huobi, one of the major cryptocurrency exchanges. The individuals, identified as Zhang, Dong, Liu, and Zhang Yi, were involved in a significant theft operation, planting Trojan horse viruses in wallets to steal more than 40,000 user reminder codes and private keys.
This theft, which occurred before Justin Sun’s acquisition of Huobi, resulted in a substantial loss for users. The perpetrators added a backdoor program to virtual currency wallet software in early March 2023, obtaining user private keys and corresponding parsed digital wallet addresses. They destroyed the server and database after recording the stolen private keys, planning to use them two years later to illegally access users’ virtual currencies.
The defendants successfully changed more than 19,000 digital wallet addresses, obtaining over 27,000 reminder codes and more than 10,000 private keys. In April 2024, the Xuhui District People’s Court sentenced Liu, Zhang A, and Dong to three years in prison and fined them 30,000 yuan for illegally obtaining computer information system data.
解説
- Trojan Horse Virus: A type of malware that misleads users of its true intent, often used to gain unauthorized access to systems by disguising itself as legitimate software.
- Private Key: A secret key used in cryptography, which allows access to the cryptocurrency stored in a digital wallet.
- Virtual Currency Wallet: A software application or hardware device used to store, send, and receive digital currencies securely.
This case highlights the ongoing challenges in securing digital assets within the cryptocurrency industry. The involvement of insiders in such thefts underscores the importance of robust security measures and vigilant monitoring to protect user funds. As the crypto market continues to grow, ensuring the security of digital assets remains a top priority for exchanges and users alike.