Ukrainian Authorities Arrest Man Who Hacked Server Hosting Providers to Mine Crypto Worth $4.4 Million

A 35-year-old Ukrainian man was arrested for hacking over 5,000 hosting accounts to mine $4.4M worth of cryptocurrency. Law enforcement found laptops, crypto wallets, and hacking software across multiple regions during coordinated raids. The suspect faces up to 15 years in prison under Ukrainian cybercrime laws, with the investigation still ongoing.

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Pardon Joshua
Pardon Joshua
Pardon Joshua is a seasoned crypto journalist with three years of experience in the rapidly evolving blockchain and digital currency space. His insightful articles have graced the pages of reputable publications such as CoinGape, BitcoinSensus, and CoinGram.us, establishing him as a trusted voice in the industry. Pardon's work combines in-depth technical analysis with a keen understanding of market trends, offering readers valuable insights into the complex world of cryptocurrencies.

Ukrainian law enforcement has apprehended a 35-year-old man from Poltava accused of illegally mining cryptocurrency by hacking into the servers of an international hosting company. 

According to the Cyber Police Department, the suspect began his activities as early as 2018, exploiting vulnerabilities in server security systems. 

Over the years, he reportedly gained unauthorized access to more than 5,000 customer accounts, using the compromised resources to operate mining software. 

The prolonged abuse of server infrastructure caused financial damages estimated at approximately $4.4 million (or 185 million Ukrainian hryvnias) to the hosting provider.

Hacking Operations Involved Global Coordination and Sophisticated Tools

The arrest was the result of an extensive investigation led by cyber police in the Zaporizhia region.

They worked in conjunction with local prosecutors and international law enforcement, including Europol and the Department of International Police Cooperation. 

The suspect was said to have collected intelligence from open sources to identify weak points in server defenses and then used this knowledge to break into secured systems. 

Once inside, he deployed unauthorized virtual machines to mine cryptocurrency without detection, using advanced tools to manage and scale his operations across thousands of servers.

Also Read: Vietnam Police Arrest Gang Behind $400M Matrix Chain Crypto Scam

Police Raid Reveals Range of Digital and Physical Evidence

During a series of coordinated searches in the Poltava, Odessa, Zaporizhia, and Dnipropetrovsk regions, law enforcement officers seized a wide range of evidence from the suspect’s various residences. 

SOURCE: Cyberpolice.gov.ua

Among the confiscated items were laptops, mobile phones, bank cards, and crypto wallets, as well as specialized hacking and mining software. 

Forensic analysis revealed the presence of multiple email login credentials, configuration scripts for mining operations, and tools for remote system access. 

Investigators also discovered the suspect’s active participation in hacker forums, which were likely used for exchanging illicit software and stolen credentials.

Also Read: French Police Arrest 12 Individuals Linked to High-Profile Kidnap Case Involving Wife & Daughter of a Crypto CEO

Suspect Faces Lengthy Sentence as Investigation Continues

Criminal proceedings have been launched under Part 5 of Article 361 of the Ukrainian Criminal Code, which pertains to unauthorized interference with electronic and communication systems. 

If convicted, the suspect could face up to 15 years in prison, along with a ban on holding certain professional roles for an additional three years. 

Authorities have indicated that the investigation remains ongoing and that further charges may be filed as more evidence comes to light. 

The case underscores the growing challenge law enforcement faces in tackling sophisticated cybercrime operations that span both national and international jurisdictions.

Also Read: Hong Kong Police Arrest Over 500 Individuals in Massive $199M Crypto Related Crimes Crackdown

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