Invest in cryptocurrency with caution! Yixing "Blockchain Master" sentenced to 11 years for stealing 130,000 cryptocurrencies

Invest in cryptocurrency with caution! Yixing "Blockchain Master" sentenced to 11 years for stealing 130,000 cryptocurrenciesIn recent years, cryptocurrency investment has seen a surge in popularity, attracting numerous investors. However, behind the seemingly convenient transactions lie hidden security risks

Invest in cryptocurrency with caution! Yixing "Blockchain Master" sentenced to 11 years for stealing 130,000 cryptocurrencies

In recent years, cryptocurrency investment has seen a surge in popularity, attracting numerous investors. However, behind the seemingly convenient transactions lie hidden security risks. Recently, a case in Yixing, Jiangsu Province, involving the theft of cryptocurrencies using a vulnerability in a cryptocurrency trading platform has served as a wake-up call for investors.

Ms. Pan, a resident of Yixing, is an avid cryptocurrency investor. In October 2022, she was introduced by a friend to a man named Wang who claimed to be a "Blockchain Master." Wang not only offered free blockchain knowledge lectures to Ms. Pan and other crypto enthusiasts but also enthusiastically answered investment-related questions, quickly gaining her trust.

During their conversations, Wang recommended a newly launched cryptocurrency trading website to Ms. Pan. He claimed that the platform would provide free cryptocurrencies to early users, stating that the process was simple users only needed to bind their cryptocurrency wallets to the website. Ms. Pan, intrigued by the offer, immediately followed Wang's instructions and bound her personal cryptocurrency wallet to the website. However, most of Ms. Pan's cryptocurrencies were stored on exchanges, with limited funds in her personal wallet. Her authorization to bind the wallet was solely for the purpose of receiving the alleged free cryptocurrency.

To further entice Ms. Pan, Wang shared news about the collapse of the world's second-largest cryptocurrency exchange, claiming that numerous investors were unable to withdraw their cryptocurrencies stored on the exchange. He suggested that Ms. Pan transfer her cryptocurrencies to her personal wallet for security reasons. Ms. Pan, believing his claims, followed Wang's advice and transferred over 130,000 cryptocurrencies from three exchanges to her personal wallet.

However, just two days later, Ms. Pan discovered that all the cryptocurrencies in her personal wallet had vanished. Upon investigation, she realized that the cryptocurrencies had been transferred to an authorized wallet address, which was precisely the one Wang had instructed her to bind. Recognizing she had been scammed, Ms. Pan filed a police report with the Yixing Public Security Bureau.

In January 2023, Wang was apprehended by the Yixing police. Investigations revealed that to gain access to others' cryptocurrency wallets, Wang had conspired with others to create a website disguised as a blockchain project. Through methods like promoting blockchain knowledge, they lured individuals into authorizing their personal cryptocurrency wallets to be bound to the website. Wang exploited the website's authorization feature to gain administrative access to Ms. Pan's wallet and stole 130,000 cryptocurrencies, converting them into cash and depositing them into his bank account, causing Ms. Pan a financial loss exceeding 900,000 yuan.

In May 2023, the case was transferred to the procuratorate. The prosecutor, after carefully analyzing the case's nature and evidence, concluded that cryptocurrency possesses property attributes. Wang, with the intent of illegal appropriation, illegally obtained access to the victim's cryptocurrency wallet and stole their cryptocurrencies, potentially engaging in multiple crimes like theft, fraud, and illegal access to computer system data, involving extremely large sums. The procuratorate formally indicted Wang on charges of theft.

After a trial, the court adopted the sentencing recommendations of the procuratorate. Wang was sentenced to eleven years imprisonment for theft and fined accordingly. Following the first-instance judgment, Wang appealed, but the Wuxi Intermediate Court upheld the verdict, rejecting the appeal.

This case serves as another warning to investors that the cryptocurrency trading process and platforms currently lack effective oversight, posing certain security risks. Prosecutors advise the public to be mindful of the security of the cryptocurrency market and trading platforms, opting for legitimate, lawful, and secure trading channels for investment and transactions, remembering that there's no such thing as a free lunch. It's also crucial to strengthen self-protection awareness, refraining from disclosing personal information and passwords, particularly being wary of illicit activities like theft, fraud, and money laundering involving cryptocurrencies. Upon detection of any such activities, immediate reporting to the authorities is paramount.