A Ukrainian man is now in custody, accused of running a large-scale cryptojacking operation. Police say he hacked into over 5,000 accounts belonging to a global hosting provider. This scheme, which reportedly ran for several years, used hijacked servers to mine cryptocurrency, causing millions of dollars in damages.
The suspect, a 35-year-old from Ukraine’s Poltava region, was arrested after a long investigation. Ukrainian cyber police, working with local investigators, Europol, and the Department of International Police Cooperation, uncovered the long-running operation.
How the Scheme Worked
Police say the hacker started his activity as far back as 2018. He reportedly looked for weak spots in the network security of different international companies. Once he found these vulnerabilities, he would get unauthorized access to their servers.
In this case, the target was a global hosting company. This company provides server rental services for websites and online platforms. The suspect managed to get into more than 5,000 customer accounts.
After getting access, the hacker would set up virtual machines on the company’s servers. These virtual machines would then run cryptocurrency mining software. This means he was using the hosting company’s powerful computers and resources to generate cryptocurrency for himself, all without permission.
Millions in Damages
The financial impact of this operation is significant. Authorities estimate the damages to the hosting company are around $4.5 million, or nearly 185 million Ukrainian hryvnia. This huge sum comes from the unauthorized use of the company’s computing power and resources over a long period.
Cryptojacking is a type of cryptomining. Normally, people set up their own powerful computers with many graphics cards to mine crypto. But with cryptojacking, hackers get into other people’s systems and turn those systems into their own hidden mining machines. They essentially steal computing power.
Catching the Hacker
Police tracked the suspect as he moved around. He frequently changed where he lived, moving between the Poltava, Odesa, Zaporizhzhia, and Dnipropetrovsk regions. This made it harder for authorities to catch him.
During a raid, police seized a lot of evidence. This included computers, mobile phones, and bank cards. They also found evidence like crypto wallets, which held the illegally mined coins. The police also found hacking tools and mining software. Importantly, they found credentials tied to the compromised systems.
Further investigation showed that the hacker was active on underground hacker forums. He had many accounts there. They also found email login details that he used to break into accounts. He had specialized software for gathering information and controlling systems remotely.
Facing Serious Charges
The man now faces serious charges. The criminal case is under Part 5 of Article 361 of the Criminal Code of Ukraine. This article deals with unauthorized interference with information systems, electronic communication systems, and information-communication networks.
If found guilty, the hacker could go to prison for up to 15 years. He could also be banned from working in any role that involves access to communication systems for up to three years.
Ukrainian officials have stated that the investigation is still going on. It is possible that more charges could be brought against the suspect as the probe continues.
