Altcoin News: Bitcoin Software Scammer Arrested in China

September 2, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The authorities of Chinese Puyang arrested a man who attracted Bitcoin holders to use a fraudulent “cold wallet”, which he allegedly created himself, writes 8btc portal.

The detainee changed the code of existing software and promoted it on local social networks. The backdoor in the code allowed him to empty wallets of his victims. From March to July 2017, he thus appropriated about 200 Bitcoins, which he sold for $400,000.

“I was invited into the Weixin chat group of Bitcoin offline trading created by him. On July 16, 2017, he said that Bitcoin was not safe on the exchange platform and he could provide me a set of ways to store Bitcoin safely. Then he sent me a software via Wechat to ask me store Bitcoin in the wallet address generated by the software according to his order,” one of the victims said.

In an effort to cover the tracks, the detainee used foreign mixers to mix coins and other methods of ensuring anonymity. The defendant did not plead guilty, but the court ruled that he intervened in the information systems of the computers of his victims to obtain information stored there, which is a violation of the law in China.

Earlier in China, it was suppressed the action of the multi-billion dollar crypto pyramid PlusToken, which also acted as a digital wallet.

Author: Marko Vidrih