A case involving the theft of 3 million yuan ($ 464,000) worth of Bitcoin in east China’s Jiangxi Province reveals the lack of oversight of digital asset management companies in China, experts said.
Jiangxi police recently solved a case in which 3 million yuan of Bitcoin was stolen and ultimately returned to victim surnamed Shan from Xiushui County in Jiujiang.
Shan reported to local police that he was unable to access his email account linked to his digital currency wallet after the password was changed by someone else. The wallet contained a total of 8.236 Bitcoins, or 2.96 million yuan.
According to the police, Bitcoin virtual currency transactions are carried out with blockchain technology, which makes it extremely confidential. Without a crime scene or real evidence of a crime, the investigation proved particularly difficult.
Preliminary investigations showed that the email account was connected to more than 20 phone numbers, which had been illegally obtained by the suspects to keep the police away from their tracks.
Despite the difficulties, police managed to locate the suspect, surnamed Zeng, in east China’s Jiangsu Province, through mass examination and analysis of the data, and eventually apprehended him in Nanning. in southern China’s Guangxi Zhuang Autonomous Region on April 20.
Zeng confessed that he got greedy after Bitcoin’s recent price spike and conspired with others to trick users into giving up their passwords for Bitcoin-logged in email accounts. Zeng transferred 8,236 Bitcoin under Shan’s account to his own account 30 times.
Zeng has been taken into criminal detention and the case is still under investigation, police said.
“It is not uncommon for such cases of digital currency theft to occur these days, and related legislation on such criminal behavior already exists. Such cases reveal the lack of oversight over the management and functioning of institutions. and digital asset companies to protect the rights of owners, ”Cao Yin, CEO of the Digital Renaissance Foundation, told Global Times on Sunday.
Cao said that with the emergence of more forms of digital assets on Blockchain in the future, related oversight of digital asset management companies should be put in place as soon as possible.