Cryptocurrency Ransom Case: Engineer Sentenced for 330,000 Yuan Extortion

In a significant development in the realm of cybercrime, the People's Court of Shangcheng District, Hangzhou, Zhejiang Province, has handed down a verdict in a high-profile cryptocurrency ransom case. The case involved an engineer who leveraged his expertise in cybersecurity to deploy a Trojan virus, effectively "hacking" into the network systems of multiple businesses and demanding cryptocurrency as ransom.

By the end of 2023, the head of the technology department at a medical institution in Hangzhou received multiple reports from various departments that their systems were inaccessible. Upon investigation, it was discovered that 89 servers across the company were rendered inoperable, leading to a complete halt in business operations. The financial impact was severe, with three victimized enterprises collectively spending over 330,000 yuan to purchase cryptocurrency from a third party to pay the ransom and restore normal operations.

Following the arrest of the suspect, he confessed to the crime of extortion through the use of a Trojan virus. On September 11, 2024, the People's Procuratorate of Shangcheng District filed public prosecutions against the suspect, Qi, and three other individuals on charges of extortion and infringement of citizens' personal information. The case was heard in the People's Court of Shangcheng District in March 2025. Recently, the four defendants were sentenced to imprisonment ranging from three years to seven years and six months, along with fines. The judgment is currently in effect.

This case highlights the growing threat of cybercrime, particularly the use of ransomware to extort businesses. The significant financial loss incurred by the victimized enterprises underscores the need for robust cybersecurity measures to protect against such attacks. The successful prosecution of the perpetrators sends a strong message to potential cybercriminals, emphasizing the legal consequences of engaging in such activities. The verdict also serves as a reminder to businesses to invest in comprehensive cybersecurity strategies to safeguard their operations and data from malicious attacks.