Connect with us

Bitcoin

Bitcoin [BTC] phishing attack lands 37-year old man in prison for 12 months

Priya

Published

on

Bitcoin [BTC] phishing attack lands 37-year old man in prison for 12 months
Source: Unsplash

On 9 April 2019, the United States Attorney’s District of Connecticut office released an official statement about a man imprisoned for stealing Bitcoins in “dark web phishing scheme.” The man in question was identified to be Micheal Richo, from New Haven and formerly Wallingford.

The announcement made by John H. Durham, US Attorney for the District of Connecticut, stated that the 37-year old man was sentenced to 12 months and one-day confinement by U.S District Judge, Vanessa L. Bryant. Along with the imprisonment, Richo will serve three years of special parole for charges related to fraud and money laundering schemes “in connection with a scheme to steal bitcoins in an online phishing scheme.”

The statement further read,

“Judge Bryant also ordered Richo to pay a $10,000 fine and to forfeit various computers and electronic devices, an assortment of precious coins and metals that he bought with the proceeds of his offense, and $352,500 in cash.”

According to the announcement, Richo was involved in an online phishing scheme with the intention of stealing Bitcoin from users on the dark web. This was done by posting fake links of various online marketplaces on various dark net platforms. These links would then redirect to a log in page that would resemble the real online marketplace log in page, thereby, gaining access to the usernames and passwords of those users who attempted to log in on the fake website.



This was followed by Richo withdrawing Bitcoins from those users, once they deposited currencies with the real marketplace, and depositing them in his own wallet. By doing so, the convict gained access to over 10,000 usernames and passwords and Bitcoins worth $365,000.

A statement from the Justice Department stated,

“[…] sold the stolen bitcoins to others in exchange for U.S. currency, which was deposited into bank accounts that he controlled or was provided to him through Green Dot Cards, Western Union transfers, and MoneyGram transfers.”





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC]: Andreas Antonopoulos breaks down life cycle of a transaction on the BTC blockchain

Akash Anand

Published

on

Bitcoin [BTC]: Andreas Antonopoulos breaks down the life cycle of a transaction on the BTC blockchain
Source: Pixabay

Bitcoin [BTC] and its intricacies have been a concept that many users in the cryptoverse have been trying to understand since its inception. In his latest video, Andreas Antonopoulos, a major Bitcoin bull and the author of Mastering Bitcoin, elucidated on the life cycle of a wallet transaction from start to finish.

Antonopoulos stated that from the point someone sends a transaction from a wallet to its confirmation on the Bitcoin blockchain, the wallet constructs a transaction by accumulating the BTC in the user’s wallet and assigning the addresses. The user’s wallet then transmits the transaction’s information to one of the many nodes it is connected to, from where it can be sent to ‘1, 2 or even 8 other nodes’. He added:

“The transaction is then transmitted to other nodes, which can be mining nodes, e-commerce payment gateways, and many such options. Each of those nodes will receive the transaction from your node and each of those, in turn, will validate every single transaction. When the nodes receive the transactions, they don’t’ know whether it was created by you or was forwarded and hence each of these transactions need to be validated individually.”

Antonopoulos went on to state that if all the nodes are validated, ie. if the payment details are correct and if it is confirmed that no double spend has occurred on the blockchain, then eventually through the process of ‘flood propagation’, the transaction information will be sent to every other node, out of which some may be mining nodes. In his words:



“Once the transaction reaches the mining pool, it maintains a pool of unconfirmed transactions, like a bucket where all this unconfirmed data is stored. This is the pool known as the mempool. Also, know that there isn’t THE mempool rather there is ‘A’ mempool. Information in separate mempools can be in a 99 percent overlap but there will never be a case where it will completely similar.”

According to the author, the mempool also serves the purpose of providing transaction for a miner to add a new block after which ‘the race is on’ for the next block. Miners usually have to construct a block and then solve the Proof of Work on it to eventually make it a confirmed block. Antonopoulos claimed that once the block is made, the information will be sent to the mining equipment to solve the PoW on that particular block and probably after a “billion hashes” the miners will find the block. The Bitcoin bull elucidated on the information transfer back by saying:

“Once the PoW is solved, the mining node will propagate the node back the same way as it received. The nodes validate the block on the way back and once all the nodes confirm its validity, then the user’s wallet will know that there is a confirmation on the transaction. That is the entire life cycle of a transaction.”





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending