Chinese Police Arrests 15 Men Over Crypto Mining Scandal


September 4, 2019 11:07 pm

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Fifteen men from Henyang, a city in south-central China’s Hunan province have been arrested for cryptojacking. The culprits are suspected of corrupting an internet cafe to mine cryptos. More than 9,000 computer administrators were reportedly involved in helping the unauthorized mining operation.

According to the reports from the local crypto industry news outlet 8BTC, the suspects sold overall mined cryptocurrencies for over a hundred million yuan (about $14 million) in the four months ending in July. Local police stated that many local Internet cafes were running crypto-jacking malware. 

However, the investigation suggests that the malware has been developed by a network technology company in Zhengzhou, and the company’s head is surnamed, Zhang. Zhang is caught for bribing the internet cafe administrators to let him install the malware on their computers. All of the 15 men allegedly involved are now under arrest and the investigation is still ongoing.

In August 2018, Chinese Police arrested three hackers in China who stole bitcoins and other cryptocurrencies worth $87 million. The police were investigating the case for one month. The hackers were found in Hunan, Changchun provinces, and the capital city Beijing.

One of the reports stated that a self-claimed victim, whose surname is Zhang, filed a complaint to the police in the northwestern city Xi’an in March while his computer was hacked and lost cryptocurrencies worth around $14.5 million.

The police investigation, with the support of various famous but unnamed internet companies, later tracked a hacker with the surname Zhou, who hacked Zhang’s personal computer for transferring the funds.

As the investigation continued, the police caught two more suspects who are known to be Zhou’s friends. Both of them are claimed to be highly experienced hackers.

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