Bitcoin (BTC) created a way for a lot of people to make quick and easy money by mining Bitcoin (BTC). They just plug in their computer and solve complex mathematical problems on the blockchain and get rewarded with Bitcoin.
However, as the awareness and adoption of the digital currency continues to rise, so is the mining complexity. Bitcoin (BTC) mining requires a lot of electricity, and this has pushed a lot of retail miners out of business.
A 21-year-old Russian hacker from the Siberian city of Kurgan is facing criminal charges for illegally mining Bitcoins (BTC) via government-owned servers, local news agency Ura.Ru reports Tuesday, October 16, citing the regional office of Russia’s Federal Security Service (FSB).
It was found through constant investigation that the hacker hacked public administration servers in three Russian regions. When the intruder tried to hack the equipment of Internal Security Division in the city of Yaroslavl, he was caught in the act.
The alleged hacker was then charged with deliberate use of software that “neutralizes” a computer’s network defence “out of self-interest.” Under this article he could face up to five years in prison, if found guilty.
Illicit mining cases, stealing or illicitly receiving electricity then used to mine is often the crime punished by prison terms, rather than the mining itself. For instance, in South Korea this April, police arrested miners who purposely rented out factories and chicken farms to receive electricity for substantially lower rates.
There has been a noticeable migration from Bitcoin to Zcash and Monero as a method of financing illegal activities. The main reason behind this migration is the enhanced privacy protection features in these altcoins. However, BTC is still “the primary cryptocurrency encountered by law enforcement.”
Recently, local Korean media outlet TokenPost reported that HDAC was subjected to a server breach that permitted unauthorized access to the hackers. The hackers managed to get hold of the internal controls of the mining pool. HDAC team swung into action and had put recovery management practices into place. The group reiterated that withdrawal had been stopped till further notice.