HTX User Private Keys Infringed, Former Exchange Employee Gets 3 Years in Prison
Key Points:
- 3 ex-employees received three-year prison terms for stealing over 27,000 mnemonics and 10,000 HTX user private keys from a virtual wallet.
- HTX reported a Trojan horse attack by a former employee and is cooperating with authorities in the investigation.
According to Wu Blockchain, the Xuhui District People’s Court handed a three-year prison sentence to Liu, Zhang, and Dong for their participation in one of the largest crypto thefts in a recent legal ruling.
Read more: The British Regulator Warns 143 Crypto Firms, Including HTX and KuCoin
Ex-employees Sentenced for Stealing Cooperative User Private Keys
The trio, former staff of HTX, was found to have illegally gained access to more than 27,000 mnemonics and 10,000 HTX user private keys from crypto wallet software. It had planted a backdoor program in March 2023 that allowed the harvesting of HTX user private keys. Before the culprits could destroy the server and database in May 2023, the stolen data was used to convert over 19,000 digital wallet addresses.
Separately, Zhang had faced charges over another virtual wallet platform, this one used by another reporter, Ou. Back in July 2021, Zhang had planted a backdoor into that virtual wallet platform’s software. The malicious code gathered HTX user private keys and mnemonics during transactions and mailed them to Zhang’s email.
HTX Addresses Data Breach Linked to Former Employee’s Trojan Horse
Under financial pressure, Zhang used the stolen data in April 2023 to sweep all of Ou’s virtual currency into his wallet. Zhang was later convicted for the criminal offense of illegally accessing more than 6,400 HTX user private keys and mnemonics and was sentenced to a three-year prison term, in addition to a fine in the amount of RMB 50,000.
Wu Blockchain also cited a report from 2023 whereby a Trojan horse from an ex-HTX employee exposed user data from iToken, formerly Huobi Wallet. HTX explained it as a personal act of an ex-employee, saying that HTX has been assisting in inquiries with the Shanghai Public Security Bureau thus far.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Author
News
HTX User Private Keys Infringed, Former Exchange Employee Gets 3 Years in Prison
Key Points:
- 3 ex-employees received three-year prison terms for stealing over 27,000 mnemonics and 10,000 HTX user private keys from a virtual wallet.
- HTX reported a Trojan horse attack by a former employee and is cooperating with authorities in the investigation.
According to Wu Blockchain, the Xuhui District People’s Court handed a three-year prison sentence to Liu, Zhang, and Dong for their participation in one of the largest crypto thefts in a recent legal ruling.
Read more: The British Regulator Warns 143 Crypto Firms, Including HTX and KuCoin
Ex-employees Sentenced for Stealing Cooperative User Private Keys
The trio, former staff of HTX, was found to have illegally gained access to more than 27,000 mnemonics and 10,000 HTX user private keys from crypto wallet software. It had planted a backdoor program in March 2023 that allowed the harvesting of HTX user private keys. Before the culprits could destroy the server and database in May 2023, the stolen data was used to convert over 19,000 digital wallet addresses.
Separately, Zhang had faced charges over another virtual wallet platform, this one used by another reporter, Ou. Back in July 2021, Zhang had planted a backdoor into that virtual wallet platform’s software. The malicious code gathered HTX user private keys and mnemonics during transactions and mailed them to Zhang’s email.
HTX Addresses Data Breach Linked to Former Employee’s Trojan Horse
Under financial pressure, Zhang used the stolen data in April 2023 to sweep all of Ou’s virtual currency into his wallet. Zhang was later convicted for the criminal offense of illegally accessing more than 6,400 HTX user private keys and mnemonics and was sentenced to a three-year prison term, in addition to a fine in the amount of RMB 50,000.
Wu Blockchain also cited a report from 2023 whereby a Trojan horse from an ex-HTX employee exposed user data from iToken, formerly Huobi Wallet. HTX explained it as a personal act of an ex-employee, saying that HTX has been assisting in inquiries with the Shanghai Public Security Bureau thus far.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Related Posts
Latest
Best New Meme Coins to Invest in Today: BTFD Coin Wows Investors with Unmissable Stage-7 Price Reversal as Book of Meme and Snek Crash
Press Release
Best New Meme Coins to Invest in Today: BTFD Coin Wows Investors with Unmissable Stage-7 Price Reversal as Book of Meme and Snek Crash
Best New Meme Coins for Massive Return Potential: BTFD Coin’s Amazing Offer, Cat in a Dog’s World Sees Down Turn, Degen Down Double Digits
