A Group of Hackers Used Chinese Internet Cafes to Mine Siacoin (SC)
A new cybernetic attack took place in China. Hackers have broken the technical systems of several Internet cafes’ computers in order to mine Siacoin (SC).
According to Hangzhou, 16 suspects were arrested by authorities in Rui’An city, Zhejiang province. It was found that they have collected 5 million yuan ($ 800,000) by infecting over 100,000 computers based in 30 Chinese cities.
“Recently, the Rui’an police dismantled a 16-person “hacker” group. They “held” hundreds of thousands of computers in more than 30 cities across the country and used them for free to mine for themselves. In just a few months, they earned 510 More than ten thousand yuan,” the announcement cites.
First: a malware program
According to the report, the group of hackers has started to operate with illegal activities by creating a malware program dedicated to mine Siacoin. It’s supposed that hackers have collaborated with computer maintenance firms based in China to more effectively infect target computers. As a reward for their help, hackers owed some of their mined crypto assets.
Suspicions began to appear in July 2017
Suspicions began to appear in July 2017 when Internet cafes’ administrators based in Rui’An began to notice that the power of computer processing was getting slower, considering that daily CPU usage reached 70%. Coincidentally or not, Siacoin’s value grew by 400% at that time and was traded at $ 0.002 in May and $ 0.01 in July, according to CoinMarketCap.
“So many computers collectively poisoned, and every month’s electricity bills go up. This business simply can’t be done,” claimed Mr. Liu, one of the Internet cafe’s owners.
As a result of the increase in power consumption of computers, the amount recorded in the utility bills began to increase significantly. After a short period of time, the owners complained to the local police. The first arrest was conducted against the chief executive of a computer maintenance firm (whose name is not disclosed in the report) as most Internet cafes used firm’s services. After the arrest, CEO revealed the identity of hackers.
The investigation has not been completed as malware is spread through China’s cities, with more than 100 computer maintenance firms suspected of having to deal with this case.