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A Chinese Arrested for Luring Victims to Use Bitcoin Cold Wallet He Created

Authorities in Puyang, a city in middle China’s Henan Province, have arrested a man after he reportedly for luring others to use the Bitcoin cold wallet he created.

The man modified the code to create a bitcoin “cold wallet” and recommend it to others. Then he used an invasion program to stole the Bitcoins secretly when someone deposits Bitcoins in this wallet.

During the past four months from March 2017 to July 2017, the man had stolen 200 Bitcoin. All Bitcoins stolen had been sold amounting to over 3 million yuan (about $0.4 million).

“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.”

Said one of the victims Mr. Wu, the criminal obtained access to a program or system from a covert channel bypassing the security control of the software according to the principle of Bitcoin.

The criminal used not only domestic, but also foreign platforms to mix coins. All kinds of advanced anonymous trading functions of bitcoin have been brought into full play by him.

Although the defendant retracted his confession, the local court judged him of intruding into other people’s computer information systems to obtain the data stored in the computer systems which constituted the crime of illegally obtaining computer information system data.

cofCrypto wallet scam is not new in China, last month, another crypto wallet scam named ‘YouBank’ fleeced over billions of dollars from investors in China.

Security has long been an unavoidable issue in the crypto space, especially in Bitcoin. Investors should learn more about the industry to make a correct judgment. Mobile phones and computers that store cryptocurrency should be equipped with anti-virus software. Not use software downloaded through unknown channels to store cryptocurrency is the principle.

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