China Tackles Cryptocurrency Crimes with First Case and New Guidelines

by

As a researcher with a keen interest in technology and law, particularly in the rapidly evolving field of cryptocurrencies, I find the recent actions taken by the Xuhui District Procuratorate in China to be a significant stride towards ensuring digital security and combating cybercrime.

In China, the Xuhui District Procuratorate has disclosed the nation’s initial instance of unlawful seizure of digital wallet key codes. This incident represents the first known case of cryptocurrency-related crime in the country, as law enforcement responds to the increasing and pervasive illegal activities surrounding crypto assets.

Together with the unveiling of the case, the Xuhui District Procuratorate and the Xuhui District Public Security Bureau have also joined forces in endorsing the ‘Regulations for Handling Virtual Currency in Criminal Cases.’ These freshly agreed-upon guidelines offer a transparent approach to managing virtual currency cases, encompassing crucial actions such as gathering evidence, confiscating assets, ensuring their security, and eventual disposal.

The establishment of ‘Guangqi X Space’ served as a clear indication of China’s increasing efforts against the rise of cybercrime. This platform, launched by the Intelligent Procuratorial Research Center of the Shanghai Procuratorate and overseen by the Xuhui District Procuratorate, primarily targets novel cyber-offenses associated with artificial intelligence, big data, blockchain, and digital assets. Its purpose is to serve as a hub for managing cases, disseminating knowledge, and creating efficient regulations.

Additionally, this space will play a significant role in establishing a comprehensive legal framework for battling and deterring cybercrimes, as well as ensuring robust legal safeguards for technological advancements.

Combating the Rise of Cybercrime in China

For the past three years, Song Shanshan, leader of the cyber prosecution team at the Xuhui District Procuratorate, has observed a significant increase in criminal cases related to digital currencies. He emphasized that these crimes are meticulously planned and employ sophisticated methods. Often, substantial amounts of money, sometimes exceeding millions of yuan, are involved.

In China, the first known instance of unlawfully acquiring digital wallet private keys was disclosed. This case implicated three people who were convicted for illegally obtaining approximately 27,622 mnemonics, 10,203 private keys for digital wallets, and 19,487 digital wallet addresses.

It came to light that a man known as Liu, along with two other suspects, collaborated to secretly insert a ‘backdoor’ into a software bundle for a digital wallet used in a cryptocurrency app. This covert move enabled them to continue committing unlawful activities.

1. The information gathered was later utilized to identify 19,487 digital wallet addresses, emphasizing the importance of a stronger security system within the virtual currency sector. Subsequently, after charges were brought forward by the Xuhui District Procuratorate, all culprits received three-year prison sentences and fines totaling 30,000 yuan from the Xuhui District Court for unlawfully obtaining data.

1. It’s great that the Chinese authorities have launched a new platform and introduced fresh measures to tackle cybercrime, especially since it’s growing increasingly concerning in the digital currency sector, causing many people to lose significant amounts of money. This new effort could potentially reduce cybercrimes within China and possibly extend its impact globally as well.

Read More

2024-08-30 19:36