Ukrainian Man Arrested for Alleged Cryptojacking Scheme

According to Cointelegraph, Ukrainian authorities have detained a 35-year-old man from the Poltava region, accusing him of hacking into an international hosting company's accounts to mine cryptocurrency illegally. The Ukrainian National Police's cyber division reported that the suspect had been exploiting vulnerabilities in the online security systems of various international firms since at least 2018. The police allege that the man gained unauthorized access to over 5,000 customer accounts of a hosting company that offers server rental services for websites and online platforms. Once inside, he reportedly deployed virtual machines and crypto miners, a practice known as cryptojacking, to mine cryptocurrency without the company's consent. The Ukrainian police estimate that the unauthorized use of the company's resources resulted in losses exceeding 185 million Ukrainian hryvnias, equivalent to approximately $4.4 million. To avoid detection, the suspect allegedly changed his residence frequently within the Poltava, Odesa, Zaporizhia, and Dnipropetrovsk regions. During a search of the suspect's residence, law enforcement officials recovered computer equipment, mobile phones, bank cards, and other evidence indicating his involvement in hacker forums. The seized items reportedly contained authorization data for email accounts used in the hacking activities, as well as crypto wallets and software for managing crypto mining operations and remotely controlling equipment. The accused faces charges of unauthorized interference with electronic information communication networks, which could lead to a prison sentence of up to 15 years if convicted. Additionally, he may be banned from holding certain positions or engaging in activities related to IT and communications for up to three years. The investigation is ongoing, and further charges may be filed. This case echoes a similar incident in the United States last April, where a man was charged with wire fraud and money laundering for allegedly defrauding cloud computing providers to conduct a large-scale cryptojacking operation, resulting in $970,000 worth of mined cryptocurrency.