Chinese police expanded to monitor international cryptocurrency activity

This falls in line with the efforts of Chinese government to provide regulation and security
01 March 2018   475

It is reported today that China Police Force from recently includes a special unit for monitoring foreign virtual currency operations along with domestic platforms that have moved out of China. This and numerous other measures (ICO ban, blockchain patents, own cryptocurrency, decentralization of crypto trading,etc.) all aim to counter illegal financial activity like money laundering, pyramid schemes and investment fraud.

The situation came to this because after all the anti-crypto and anti-ICO measures, organizers and exchanges have decided to move overseas, outside of the jurisdiction of Chinese government. Some domestic enterprises and individuals evaded the regulation and set up exchanges outside China, moving their servers offshore or registering companies overseas.

Yet, China's National Internet Finance Association under Central Bank reported that such transition to foreign platforms didn't stop domestic investors from accessing them. This poses a formidable risk associated with global digital currency activities, especially that of being involved in pyramid schemes, as reported earlier by Chinese Ministry of Public Security. The most effective way of countering such behaviour is to be able to freeze trading accounts by means of banks.

Chinese Hackers Mined $800k Worth Siacoin Hiddenly

According to the police, hackers in collusion with serving companies hacked 100,000 computers in Internet cafes in 30 Chinese cities
19 June 2018   61

In China, 16 people were arrested who earned $ 800,000 on the illegal mining of Siacoin cryptocurrency in the Internet cafes in dozens of Chinese cities, CoinDesk reports.

According to the police of Chinese Ruian (Zhejiang Province), hackers in collusion with serving companies hacked 100,000 computers in Internet cafes in 30 Chinese cities . Their income was 5 million yuan ($ 800,000).

Hackers used a malicious program that used the computing resources of infected devices to extract Siacoin crypto currency. Malicious software was sold to employees of computer maintenance companies who could download it to a PC in an Internet cafe during scheduled checks.

Suspicions arose in July 2017, when employees of Internet cafes in Ruyan noticed that their computers began to work very slowly. The CPU performance dropped by 70% even after the reboot.

Around the same time, the price of Siacoin according to CoinMarketCap grew by 400% from $ 0.002 in May to more than $ 0.01 in July. Accounts for utility services of Internet cafe Ruiana during this period also significantly increased. This caused their owners to contact the police.

Most Internet cafes in Ruian were served by one company. Its executive director was arrested in August last year, and disclosed information about hackers.