The Gongshu District Procuratorate of Hangzhou City, Zhejiang Province, recently launched a public prosecution. The court gave the defendant Chen a three-year prison term with a four-year, six-month suspension and a 7,000 yuan fine.
On July 20, 2022, Chen accidently discovered a bug in a certain digital gathering platform's login process. Following an investigation, Chen was able to access the accounts of over 30 people and successfully sell 21 of them's non-fungible token (NFT) collections for a price between 1,400 and 1,600 yuan per unit, making a profit of over 30,000 yuan.
Mr. Wang, who hails from Hangzhou, is involved with the digital archive. In July 2022, Wang spent 299 Yuan to purchase a digital collection from a website. Wang was ecstatic to see how quickly the value of this digital collection rose as a result of the limited sales.
In the early hours of July 22 of that same year, Wang went back to the site and saw that the digital collection he had been holding was gone. Despite not taking part in any activities, account records show that the collection was resold to other users.
Due to the incident's rapid recurrence, Wang swiftly reported the problem in the #WeChat group of digital collecting users. Remarkably, more than ten people claimed to have experienced the identical issue.
This increased the network platform's level of attentiveness, and platform specialists quickly examined the server logs to check for any database anomalies. The research found that 21 users had their digital collections sold consecutively, and that over 30 user accounts were simultaneously connected into the same IP address.
When the online platform became aware of this peculiar situation, it made the assumption that someone had secretly accessed the user's account to carry out illegal actions on the user's digital collection. When platform technicians ran a reverse check at that moment, they found that the IP had also entered into an account with Chen as the verified real name.
To find out more, the online platform verified the situation with the third-party platform that handled the resale. The records showed that Chen's personal information matched the account registration information for the selling of 21 #NFT collections. Soon after the network platform notified the authorities, Chen was arrested. The original user account has now received access to these 21 collections.
The majority of NFTs in #China are referred to as digital collectibles and can only be bought using legal money, which is frequently yuan, as a result of Beijing's ban on cryptocurrencies. Because it views cryptocurrencies as a threat to financial stability, the national government has continually imposed restrictions on blockchain-based assets over the years.
Customer complaints against #NFTs climbed 300-fold in China in 2022, highlighting a problem that is getting harder to handle.
This news is republished from https://coinaquarium.io/
