Ukrainian Scammer/Cryptojacker Arrested – 2024

The SCARS Institute Magazine about Scam Victims-Survivors, Scams, Fraud & Cybercrime

Published: 1/12/24
Modified: 1/12/24
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Ukrainian Scammer/Cryptojacker Arrested

Law Enforcement Action Against Cybercriminals

Authors:
• SCARS Editorial Team – Society of Citizens Against Relationship Scams Inc.
• EUROPOL

Article Abstract

A 29-year-old mastermind of a complex cryptojacking scheme, believed to have mined over EUR 1.8 million, was arrested in Mykolaiv, Ukraine.

The National Police of Ukraine, supported by Europol and a cloud provider, collaborated intensively to apprehend the suspect. Cryptojacking involves the unauthorized use of cloud infrastructure to mine cryptocurrencies, bypassing server and power costs.

The joint efforts highlight successful cooperation between law enforcement and the private sector. Europol’s European Cybercrime Centre played a crucial role, in establishing a virtual command post and providing forensic support. The arrest follows a cloud provider’s alert to Europol in January 2023 about compromised user accounts

Ukrainian Scammer/Cryptojacker Arrested in Ukraine over EUR 1.8 Million Mining Scheme

The National Police of Ukraine (Національна поліція України), with the support of Europol, has arrested an individual believed to be the mastermind behind a sophisticated scammer/cybercriminal cryptojacking scheme.

Ukrainian Arrested

The 29-year-old scammer/cybercriminal/cryptojacker was apprehended in Mykolaiv, Ukraine, on 9 January.

Three properties were searched to gather evidence against the main cybercriminal suspect. The arrest comes after months of intensive collaboration between Ukrainian authorities, Europol, and a cloud provider, who worked tirelessly to identify and locate the individual behind the widespread cryptojacking operation.

The suspect is believed to have mined over USD 2 million (EUR 1.8 million) in cryptocurrencies.

Free Money for Attackers, huge Cloud bills for Account Users

Cryptojacking in a cloud environment is a malicious cybercriminal activity or scam; malicious cybercriminals gain unauthorized access to cloud computing infrastructure and use its computational power to mine cryptocurrencies.

By stealing cloud resources to mine cryptocurrencies, cybercriminals can avoid paying the necessary servers and power, the cost of which typically outweighs the profits.

The compromised account holders are left with huge cloud bills.

When Law Enforcement works with Private Industry

This case illustrates the power of law enforcement joining forces with the private sector.

A cloud provider approached Europol back in January 2023 with information regarding compromised cloud user accounts. Europol shared this information with the Ukraine authorities, who subsequently opened an investigation.

Since then, all three partners have been working closely together to develop operational leads and prepare for the final phase of the investigation.

Europol’s European Cybercrime Centre (EC3) set up a virtual command post on the action day, supporting the Ukrainian National Police from Europol’s headquarters, with analysis and forensic support on the data gathered during the searches.