Report: 16 Persons arrested for Monero Jacking in Japan

Coinhive has been installed by Japanese hackers on the websites with weak security to mine Monero - a privacy coin, what makes it harder to catch criminals
17 June 2018   1774

A number of profile websites have been suffered from cryptojacking. This year eralier, Tesla’s website was applied by hackers in order to mine Monero with Coinhive. A bug in Drupal lead to 300 sites became infected with Coinhive, including the websites of San Diego Zoo and the government of Chihuahua. As declared in the official report of UK’s National Crime Agency (NCA), the issue is not going away in the near future:

Popular websites are likely to continue to be targets for compromise, serving cryptomining malware to visitors, and software is available that, when run in a webpage, uses the visiting computer’s spare computer processing power to mine the digital currency Monero.
National Crime Agency, the UK

The Japanese authorities have made significant progress in case of cryptojacking. Last week, it was displayed that the Japanese police was examining 3 suspects using Coinhive to run mining scripts in many sites surreptitiously. The recent report from local publication The Asahi Shimbun claimed that the police have now captured 16 persons from 10 prefectures for cryptojacking, aged between 18 and 48. The suspects had conducted their own websites, that they allegedly applied to transfer programs to the visitors of their site for mining digital money without the consent of the users.

All suspects, except one, had used Coinhive. The one person had created his own program, very similar to Coinhive and he has been detained on suspicion of making a computer virus. Although Coinhive is free to install, it processes on a 70/30 model. Only 70% of the Monero mined goes to the website operator, and the remaining 30% goes to Coinhive developers.

The individuals that had only set Coinhive on the websites they owned and not on the hacked sites, were arrested nevertheless as they did not get any permission from their visitors to mine cryptocurrencies.

Developers to Combat Bitcoin Mining Cetralization 

Stratum V2 mining protocol will significantly change the principles of functioning of bitcoin mining
03 December 2019   75

The mining company Braiins has provided instructions for using a code that can make the Bitcoin mining process more decentralized, CoinDesk writes. It is expected that Stratum V2 will significantly change the principles of functioning of bitcoin mining and will help increase the safety and efficiency of mining pools.

More comprehensive than BetterHash, individual job selection, zero time backend switching. If this protocol does everything it promises, "mining centralization" as an argument will be completely dead.
 

Jimmy Song

Developer, Bitcoin

Matt Corallo of Square, who made a significant contribution to the development of the protocol:

This is huge for mining centralization. Instead of being focused on the centralization of pools (which is the world we're in today), we can focus on the centralization of actual miners [and] farm owners!
 

Matt Corallo

Bitcoin developer, Square

Last year, Corallo introduced the BetterHash protocol, which became his own plan for decentralization of mining. Now Braiins and Corallo decided to put their know-how together to present a more effective solution.

Individual miners often pool in order to smooth out the negative effect of the uneven distribution of rewards. This has led to the fact that today only three mining pools control over 50% of the computing power of bitcoin and can directly affect which transactions are included in the blocks.

To prevent this situation, Stratum V2 uses a model that changes the relationship of the miner with the mining pool. In the proposed system, the decision about which transactions to include in the blocks is made by miners, not pools. In addition, the individual right to vote in determining the vector for the development of bitcoin is returned to individual miners.

However, the developers note that mining pools interested in censoring transactions may simply refuse to install Stratum V2, and the problem of centralization consists in the production of equipment, which so far is concentrated in the hands of several large players.

To induce the use of Stratum V2 mining pools should the advantages offered by the protocol in the context of reducing costs, preventing attacks and limiting the possibility of theft of computing power. Now developers are completing the preparation of their solution, but it is already available for testing. It is expected that in the case of a favorable attitude of mining pools, their transition to Stratum V2 will require at least 12 months.