Two Russians accused of illegal mining of cryptocurrencies on state hardware

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Two Russian citizens have been prosecuted for allegedly targeting computers with state organizations to illicitly mine cryptocurrency.

The two unnamed individuals allegedly infected the hardware with a program that mines cryptocurrency via a web browser, local media agency Tass reported on Dec.16.

One of the suspects, residing in the city of Kurgan, is said to have created a large botnet to infect computers in various regions of the country. The second suspect reportedly focused his mining operations on hardware at the state-owned water utility JSC Rostovvodokanal.

Mining can use up to 80% of goal processing power, the official warns

As reported, the illicit use of a computer’s processing power to mine cryptocurrencies without the owner’s consent or knowledge is sometimes referred to as cryptojacking.

Although Tass does not disclose details of the cryptocurrency mined by the two suspects, malware like a coin miner – based on the Coinhive code – is an example of a prevalent program designed to illicitly mine Monero (XMR) via a browser.

In a statement released at a press conference on Dec.16, Nikolay Murashov – deputy director of the National Coordination Center for Computer Incidents of Russia – noted that “up to 80% of free computer power can be used to generate virtual coins and a legitimate the user may not even know it. “

Murashob pointed out that this illicit use of processing power can negatively impact business operations and harm companies’ performance, warning organizations to implement appropriate cybersecurity measures.

Tightening rules

Perhaps the best-known case of illicit mining at a state organization in Russia was foiled in February 2018, when Russian security officers struck a coup against a group of nuclear engineers at a top-secret nuclear warhead facility that had attempted to use one of the country’s most powerful supercomputers to mine Bitcoin (BTC).

Recent developments in Russia have included an alleged plan to pass legislation that would allow authorities to confiscate cryptocurrency holdings as part of court proceedings.

Cointelegraph also reported that Russia’s central bank, financial regulator, and finance ministry would be in favor of banning the use of cryptocurrencies to pay for goods and services.

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