- In a significant revelation, Chinese authorities announced that four former employees of a major cryptocurrency exchange, Huobi, were implicated in a substantial crypto theft.
- The individuals, identified as Zhang, Dong, Liu, and Zhang Yi, used Trojan horse viruses to access over 40,000 user reminder codes and private keys, leading to the theft of numerous cryptocurrencies. The exact amount stolen remains undisclosed.
- This incident occurred before Justin Sun’s acquisition of the company. Huobi was once the leading cryptocurrency exchange in China.
Former Huobi employees embroiled in a significant crypto theft scheme, resulting in the unauthorized access of thousands of digital assets.
Details of the Crypto Theft Uncovered
The Ping An Xuhui official WeChat account revealed that in early March 2023, these employees decided to infiltrate the virtual wallet software with a backdoor program. Their objective was to extract user private keys and use these compromised keys to illegally acquire virtual currencies two years later. After obtaining the private keys and recording related digital wallet addresses, the perpetrators destroyed the server and database to cover their tracks.
Legal Repercussions and Sentencing
In April 2024, the Xuhui District People’s Court sentenced the perpetrators Liu, Zhang A, and Dong to three years in prison, along with a fine of 30,000 yuan for illegal acquisition of computer system data. This legal action followed their successful acquisition of over 27,000 reminder codes and more than 10,000 private keys, leading to the unauthorized alteration of 19,000 digital wallet addresses.
Conclusion
This incident underscores the ongoing risks and complexities associated with digital asset security. As the cryptocurrency market continues to grow, ensuring robust security measures and regulatory oversight is essential to protect investors and maintain market integrity. Stakeholders must stay vigilant to prevent such breaches and uphold trust in the burgeoning digital economy.
