Three Programmers Sentenced for Stealing Cryptocurrency Wallet Keys

Three programmers in Shanghai have been sentenced to three years in prison for illegally obtaining digital wallet private keys. The case, deemed the first of its kind in China, involved the trio planting a ‘backdoor’ within a decentralized wallet app used to store virtual currencies. This allowed them to steal user data, including private keys and mnemonic phrases, which were then uploaded to a server and later downloaded to a local server. The individuals were responsible for different aspects of the operation, including coding, server setup, and domain registration. The court found that the trio had illegally obtained 27,622 mnemonic phrases and 10,203 private keys, leading to the acquisition of 19,487 digital wallet addresses. The case highlights the increasing sophistication of cryptocurrency crime, with perpetrators utilizing tools like mixers, cross-chain bridges, and anonymous coins to obscure their activities, making it challenging to track and gather evidence.