According to a Japanese news outlet, Monappy crypto wallet was hacked by an 18-year-old boy who has now been apprehended by the police. While instances of cryptocurrency wallet and exchanging hacking have grown in recent time, this would mark the first time Tha police in Japan would arrest and charge a teen for hacking a cryptocurrency exchange.
18 Year Old Hacker Nabbed By Police For Attack On Monappy Crypto Wallet
Per the report, the hacker stole $134,310 in MONA. MonaCoin is a hard fork of Litecoin. While the attack happened on the 1st of September, the offender was charged last week. The Japanese police did not reveal his identity because he is still a minor. However, the cryptocurrency wallet hacker resides in Utsunomiya, Tochigi Prefecture. For now, information about how he managed to steal the funds have not been revealed but it is possible that he exploited a vulnerability in the wallets codebase. This is the most common way to steal from exchanges.
Litecoin (LTC) Price Today – LTC / USD
When speaking to the police, the hacker said that he stole the funds after he noticed a loophole on the website that led to a system malfunction. The malfunction occurred when users attempt several cryptocurrency transfers within a short period. He added:
“I felt as if I’d found a secret trick and thought I would take out all of the MonaCoin.”
To exploit the vulnerability, the hacker made several transfers to his wallet almost instantly and eventually found the loophole that allowed him to steal the cryptocurrency. Monappy crypto wallet reported, at the time, that the attack affected about $7,700 investors. The exchange said that all the affected victims will be reimbursed and the loophole would be covered.
The police report stated that the young man engineered the attack through Tor Browser. This is kind of ironic since Tor Browser is a security tool that was produced by the United States to ensure confidential and secure communication for its military. With the browser, data is encrypted in all the servers it goes through until it gets to the final destination.
Using Tor Browser, the hacker was able to successfully cover his tracks during and after the attack. It wasn’t until after vigorous investigations that the authorities finally discovered that he is the culprit. Since the incident, the financial regulators in Japan have been investigating possible vulnerabilities in exchanges. In fact, the Japan Financial Services Authority, FSA, recently ordered that six exchanges that may be prone to attacks improve their internal control systems to avoid possible closure.
Zero Tolerance For Cryptocurrency Exchange Offenders
Even if there are no global rules regarding the distribution of cryptocurrencies, different countries have been trying to protect their investors with zero tolerance for hacks, embezzlement or any other thing that may hurt investors in the cryptocurrency space. Some of the largest heists in history have happened in Japan. So, it’s not surprising to see that the regulators are paying close attention.
As reported by smartereum.com a few days ago, the 5 years long trial of Mark Karpelès finally came to an end. The CEO of Mt.Gox, one of the largest cryptocurrency exchange per volume at one time, was sentenced to two and a half years in prison for data manipulation. He was at risk of being sentenced to ten years in prison because the charges against him were fraud, embezzlement, data manipulation among others. While he was found guilty of data manipulation, he was cleared of the other charges that led to the 850,000 BTC theft on the account.
What do you think about the Monappy crypto wallet hack? Share your thoughts in the comment section.