Case Overview

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In May 2023, a citizen named Ou discovered that millions of virtual coins in his account were stolen while using a certain virtual currency wallet software. Upon investigation, it was found that the software contained a backdoor program that could steal sensitive information such as user private keys. Ou promptly reported to the police, and suspects Zhang, Dong, and Liu were arrested one after another in August 2023.

The three confessed that since March 2023, they had implanted a backdoor program in the wallet software to steal user data and upload it to an encrypted database, intending to use it two years later. Although they did not transfer Ou's virtual coins, it was identified that they had illegally obtained over 27,000 mnemonic phrases and over 10,000 private keys, associated with nearly 19,000 digital wallet addresses.

Judgment Result

In April 2024, the Xuhui District People's Court sentenced the three to three years in prison for the crime of "illegally obtaining data from computer information systems," and each was fined 30,000 yuan.

Case Insights

User Prevention:

Choose secure and reliable wallet software, and properly safeguard private keys and mnemonic phrases.

Developer Responsibility:

Strengthen software security reviews and eliminate malicious code.

Regulatory Recommendations:

Enhance regulation of the virtual currency market, improve relevant laws, and protect user rights.

This case reminds virtual currency users and developers to raise security awareness and jointly address potential risks in the intersection of technology and law.

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