An 18-year-old Japanese hacker has been charged with cryptocurrency theft by local prosecutors in Japan. The young man is being held liable for the theft of $134,310 (15 million Yen) in Monacoin (MONA) by the Metropolitan Police Department (MPD) of Japan, according to a report by local news agency.
Young Hacker Makes History
People often strive to make history in good things but that can’t be said regarding this particular situation. From reports, it has been established that this is the first time a hacker will be charged by Japanese local authorities for crypto theft. The alleged hacker has been accused of violating the security of Monappy, an online wallet service that helps crypto investors to store their crypto investments.
The teenager found a loophole in the website and exploited it. He overloaded the system by sending transfer requests to himself repeatedly over a short period of time which overwhelmed the system, making it to overload. The overwhelmed servers responded by increasing his balance rapidly.
Once he realized the amount he came for, the hacker moved the funds to a third party wallet service, then exchanged them for digital assets like Bitcoin before cashing out in fiat. After his arrest, the young hacker said;
“I felt as if I’d found a secret trick and thought I would take out all of the MonaCoin.”
Tor, Crypto Hackers’ Best Friend
Tor browser was originally designed to be used by the United States military to make its communication more secure and confidential.
The browser protects the identity of individuals online, but in the hands of criminals, it can be very dangerous. Judging from previous crypto hack cases, it appears that Tor has become the favourite tool for hackers who steal cryptocurrencies. The browser is so powerful that some hackers use it to steal ransomware crypto from their fellow crypto thieves.
The hacker caused this whole damage with just his smartphone and the Tor browser. More than 7,000 users were affected but the platform has accepted to repay them.
A Call for More Secure Crypto Wallets
The hack attack is an eye opener to how easy crypto firms can be breached in Japan even with the robust regulatory framework and increased adoption of cryptocurrencies in the country. It also exposes the lack of adequate security practices by crypto platforms and wallet operators.
Although this crypto wallet service breach is a first for Japan, crypto exchanges operating in the country have in the past been victims of hackers. Last year, Coincheck lost NEM tokens worth more than $530 million.