Moonday Mornings: Elon Musk and John McAfee cryptocurrency scams are back

It’s a new week, which means only one thing: it’s time for Hard Fork’s roundup of cryptocurrency and blockchain headlines from over the weekend.

Let’s get to it.

1. Security researchers from Trend Micro have uncovered a new type of cryptocurrency mining botnet. The malware targets Android devices by exploiting a debug port normally used by developers to fix defects in apps, CoinDesk reports . So far, 21 countries have been hit, with South Korea the worst affected.

2. Israeli police arrested two brothers in connection with the infamous 2016 hack of cryptocurrency exchange Bitfinex, local news reports . Israeli police told Finance Magnates that the pair is believed to have pocketed “tens of millions of dollars.” The case is currently ongoing.

3. Security researchers note there’s an increase in cryptocurrency giveaway scams, Bleeping Computer reports . Scammers impersonate the likes of Elon Musk or John McAfee, and promise free Bitcoin in exchange for a small investment to “verify your address.” In one instance, scammers appear to have netted nearly $5,000 worth of cryptocurrency. It’s starting to look like 2018 all over again .

4. As the blockchain industry continues to grow, skills gaps are beginning to appear. To address the shortage of blockchain talent in Malaysia, the country’s government is trialing a specialized work visa to attract skilled developers and professionals, local news reports .

5. An Iranian energy official has fired a warning shot to cryptocurrency miners in the country, threatening to cut off their electricity supply, according to local news . The official went on to say that using the national grid to power cryptocurrency mining machines is illegal, and Bitcoin miners would be found and their power cut off. Yikes!

Well, there you have it, the weekend’s top cryptocurrency and blockchain headlines! And we didn’t even mention Facebook’s Libra once. Oh, wait…

Swedish man sentenced to 7 years in jail after mailing a pipe bomb to Bitcoin exchange

A Swedish man has been convicted of attempted murder after sending numerous threatening letters to local politicians – and mailing a bomb-like device to a Bitcoin company in London.

The Stockholm District Court has sentenced 43-year Michael Salonen to seven years in prison, AP reports. Back in August 2017, Salonen purportedly mailed a pipe bomb device to a London-based cryptocurrency broker. The hazardous package was sent through an accounting firm where it was opened, but fortunately didn’t explode.

Police later found Salonen’s DNA on the bomb.

In addition to the explosive device, the criminal also mailed a letter (filled with white powder) to Prime Minister Stefan Lofven. The envelope, which included a note that read “you will soon be dead,” was intercepted at the Foreign Ministry in Stockholm last August.

Back in May, Salonen was arrested at Stockholm’s international airport upon arrival from Thailand, where he had been detained pending extradition.

It is not immediately clear whether Salonen intends to appeal the ruling.

For the record, this isn’t the first Bitcoin-related threat report this week.

An Indian teenager was recently charged by local authorities after calling the FBI over 50 times and threatening to blow up a Miami airport in retaliation of a US-based fraudster who allegedly stole his Bitcoin.

John McAfee’s ‘unhackable’ Bitcoin wallet (allegedly) got hacked

John McAfee threw down the gauntlet last week when claiming his newly-created Bitcoin wallet, Bitfi, was “unhackable.” It took security researchers less than a week to hack it.

As of yesterday, a Dutch security researcher known as “OverSoft” claimed to have root access to McAfee’s unhackable wallet. In a tweet, the researcher(s) said :

BitFi didn’t immediately respond, but a later tweet seems to confirm the security breach. That said, Bitfi didn’t confirm OverSoft — or anyone else — had actually breached the system. We’ve reached out for comment, but Bitfi hadn’t responded as of this writing.

Bitfi CEO Daniel Khesin then seemingly sent out a distress call of sorts, claiming “we need help.”

Things only got weirder from there, with the original hackers claiming Bitfi had no intention of paying the $250,000 bug bounty. “It’s pure marketing,” OverSoft said.

Also of note is that OverSoft hacked the device without actually owning or possessing one. This is kind of a big deal, as the device costs $120, plus shipping, and may not actually be needed.

Currently, we’re in a state of limbo. McAfee argues that gaining root access doesn’t constitute a hack, and that the hacker needs to extract money from the wallet in order to change his mind. By definition, though, OverSoft certainly hacked the wallet by gaining access to the root folder directory, thus allowing him to run keyloggers, patch the software, and do all sorts of nefarious things, if he were so inclined.

We’ve reached out to both Bitfi and OverSoft and will update this piece as needed.

Hunter Jones

Hunter Jones

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