Chinese Engineer Arrested For Stealing 100 BTC

Zhong Mo stole 100 bitcoins from his employer; he may be extended to seven years and fined
03 April 2018   1458

Engineer from Beijing was arrested after stealing 100 Bitcoins from his company. He noticed the unsuccessful hack attempt. So he decided to use the situation and steal coins by himself. After that, 90% of the stolen was returned, but he can still go to jail for up to seven years. This is reported by Bitcoin .com.

The police of the Haidian District confirmed Zhong Mo's arrest. The Haidian District is the place where most of the universities of Beijing are located, as well as the technological and scientific center of Zhongguancun, where the headquarters of many Chinese IT companies are located, which is why this center is called the "Chinese Silicon Valley".

Prosecutors from the department of investigations of scientific and technological crimes of the police in Haidan studied the case and found that the defendant worked in the company as an engineer for repairs and maintenance. It is alleged that during the regular maintenance of the server, he found that someone tried to steal the company's cryptocurrency by hacking, but the attempt wasn't successful. Eliminating the abnormal interference, the engineer took advantage of administrator's authority uploaded a piece of code designed to transfer 100 bitcoins from the company's account to his own account registered on a website outside of China. He also tried to cover up the traces of the crime by taking steps in order to avoid tracking.

Later, the criminal himself became a victim of phishing scam and lost 10 bitcoins. Then, apparently, he got scared and returned the remaining 90 bitcoins of his company. According to the rate on the day of the incident, September 16, 2017, 100 bitcoins cost about 380 thousand dollars.

According to the prosecutor in charge of the case, according to China's criminal law, for an infringement of state laws on the theft of information from a computer system, an engineer is threatened with imprisonment for up to three years, but if the circumstances prove more serious, he may be extended to seven years and fined.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   132

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.