The U.S. Department of Justice (DOJ) has apprehended Yune Wang, a 35-year-old individual who holds citizenship in both the People’s Republic of China and St. Kitts and Nevis as a result of a citizenship-by-investment program. Wang is accused of being involved in a botnet scheme that was utilized to carry out various cybercrimes, including large-scale fraud, child exploitation, harassment, bomb threats, and export violations.
Based on the indictment filed on May 29, Wang allegedly developed and distributed malware that infected millions of residential Windows computers worldwide. This was achieved through the use of the 911 S5 botnet between 2014 and 2020, affecting over 19 million IP addresses. The defendant then proceeded to sell the hijacked IP addresses to cybercriminals in exchange for cryptocurrencies. The victims of these crimes spanned more than 200 countries and included instances of financial fraud, identity theft, and child exploitation.
An independent analysis conducted by blockchain analytics firm Chainalysis revealed that wallet addresses associated with Wang held more than $130 million in illicitly obtained digital assets. The funds were acquired through commissions earned from these illegal activities. Researchers at Chainalysis provided the following statement:
“In our investigation, we have found that the wallet addresses linked to Yune Wang contained over $130 million in digital assets that were acquired through illegal means.”
Law enforcement officials at the DOJ also commented on the case, stating:
“The takedown of Yune Wang’s operations was made possible through the collaborative efforts of law enforcement officials from the United States, Singapore, Thailand, and Germany. We were able to seize a total of 23 domains and 70 servers, which served as the backbone of Wang’s criminal activities. Additionally, we have confiscated $30 million worth of assets that were linked to the 911 S5 botnet.”
Last month, Cointelegraph reported on allegations that China had infiltrated the U.S. Bitcoin mining infrastructure by utilizing locally manufactured application-specific integrated circuit mining rigs. Experts have raised concerns that these rigs could provide Chinese intelligence agencies with the means to carry out cyber-espionage activities, potentially targeting sensitive military installations, power grids, or communication networks.
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