Police in Shanghai Arrested Suspects Who Attempted to Sell Data of 130 Million Consumers for 8 Bitcoin
Police in Shanghai have arrested the suspects who posted the sale message on a dark web forum in an attempt to sell data of 130 million hotel guests for 8 bitcoins.
The hotel embroiled in the data breach, Huazhu Group Limited (NASDAQ: HTHT), is a leading and fast-growing hotel group in China, owning more than 10 hotel brands with over 3,900 hotels across 382 mainland cities.
Suffering from the vicious impact caused by the data breach, it recently provided updates on the investigation status of the alleged information leak.
“According to the latest update from the police, the police have arrested the suspects who posted the reported message on a Dark Web forum in an attempt to sell certain data. The attempted sale was not successful. The suspects also attempted to blackmail Huazhu by leveraging public pressure, without success. Further police investigation is being conducted on the subject matter. “
The company said it cannot disclose additional information on the case at this time to comply with laws and police protocols. For details of issues of public concern, including whether the allegations made on the Dark Web forum by the suspects are authentic, and whether there has been an information leak, the hotel is required not to make a public announcement until the completion of the police investigation.
Chinese companies are often under fire from customers for poor data protection. Personal information acquired from online platforms is widely bought and sold in the country. With the rise of bitcoin-like cryptocurrencies, cryptos become popular among these wrongdoers in those “dark market” as bitcoin transaction is anonymous and traders behind it are untraceable.
It was recently reported that user data from delivery giant SF Express, video streaming website AcFun, recruitment platform 51Job and bicycle sharing startup Mobike are all revealed to be compromised and sold on darknet market.