In a landmark move, the Xuhui District Procuratorate in China has unveiled the nation’s first legal case addressing the illegal acquisition of digital wallet private keys. This case marks a significant development in the legal handling of virtual currency crimes, reflecting China’s growing focus on combating cybercrime.
The case occurred at the inauguration of Guangqi X Space, a project undertaken by the Xuhui District Procuratorate and the Xuhui District Public Security Bureau. Under the literal translation of its name, Guangqi X Space is focused on combating and suppressing newer forms of cybercrime. During the ceremony, officials presented new rules regulating the disposal of virtual currency in criminal proceedings.
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The case involved three people, and one among them was a man known as Liu, who was involved in a conspiracy with others to steal the digital wallet’s private keys. The attackers hid a backdoor in an application package containing a virtual currency wallet; they could steal 27,622 mnemonics and 10,203 private keys mechanically. Using this data, the criminals obtained 19,487 digital wallet addresses and presented a direct threat to the security of virtual currencies.
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Legal Action and Sentencing in Xuhui District Court
The Xuhui District Procuratorate took swift legal action against Liu and his accomplices, filing a public prosecution. The Xuhui District Court sentenced them to 3 years imprisonment with a fine of 30,000 yuan each. It provides a legal milestone for future lawsuits relating to digital asset crimes in China.
Song Shanshan, head of the Xuhui District Procuratorate’s cyber prosecution team, claimed that the number of criminal cases related to virtual currencies has risen in the past three years. This family comprises complex and often highly specialized techniques with a clear tendency toward criminal organizations. The material losses from these crimes are tremendous and usually exceed hundreds of millions of yuan.
A New Centre for Cybercrime Prosecution
The Guangqi X Space program, founded by the Shanghai Procuratorate’s Intelligent Procuratorial Research Centre and overseen by the Xuhui District Procuratorate, intends to serve as a complete platform for cybercrime prosecution. The center’s primary mission will be to research and build legal frameworks in new domains such as artificial intelligence, blockchain, and digital assets.
Conclusion
The prosecution of Liu and his accomplices marks a critical step in China’s efforts to address virtual currency crimes. As cybercrimes become increasingly sophisticated, the establishment of initiatives like Guangqi X Space demonstrates the country’s commitment to developing robust legal responses.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.