Engineer steals 100 Bitcoins in China – An Inside Job

Cryptocurrency theft by hacking is becoming all too often as the value of the market and number of cryptocurrencies increase.  But, who knows whether the hacks are from the outside or from the inside? As reported by Bitcoin.com, an engineer from Beijing was arrested after allegedly discovering a failed hacking attempt to his company he took advantage of the situation and stole 100 Bitcoins.  

 

 

 

The engineer used his login to the server and promptly transferred the Bitcoins from the company’s wallet and sent them to an account registered in his name outside of China.  90 Bitcoins been returned but he could still face jail time.

 

 

 

 

In a fascinating twist in the story, the engineer aka THIEF fell victim to a phishing scam which took the other 10 stolen Bitcoins.  Local reports indicate this is the first case of bitcoin theft handed over to the police in Beijing.

 

Bitcoin and cryptocurrency exchanges offer free online wallets aka “hot wallets” to their customers.  This means that when the customer opens their wallet and deposits crypto, they do not control their private keys, the exchanges do.  Exchanges hold the cryptocurrencies centrally and as a result, targets for hackers. Best practice is to use exchanges for what they are intended, buying and selling only, not storing.  Learn more – How to store your cryptocurrency

 

Recently, cryptocurrency exchange CoinCheck, based in Japan, was hacked.

 
 

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