Grapefruit coin is a digital currency issued on the EOS blockchain operating system, which allows people to build decentralized applications on its public blockchain, referred to as DAPP in English, and this emerging field has been targeted by criminals. On it. Today, the reporter learned from the Yancheng police that recently, the Yancheng police successfully cracked the country’s first case of using blockchain contract technology to open a casino, arrested 25 criminal suspects, and seized more than 1.3 million virtual coins worth more than 26 million yuan.
In October 2020, the Internet Security Detachment of the Public Security Bureau of Yancheng City received a report from netizens that there is a gambling application called “Biggame” on the public chain of Grapecoin that is popular in the currency circle, and the transaction volume has long been higher than the daily transaction volume of the Grapecoin public chain. Top of the list. After preliminary investigations by the network security departments at the city and county levels, it is found that this DAPP does not need to be downloaded. Users can access and log in on the public chain or through various grapefruit coin wallets, and directly use the grapefruit coins to place bets. The gameplay includes 5 games: Shangzhuang Niuniu, Red and Black War, Ultimate Texas, Craps and Fruit Machine. Chen Guangliang, a policeman from the Internet Security Brigade of the Jianhu County Public Security Bureau, Yancheng City, introduced: “DAPP has a distinctive feature, that is, the code is open source, which all users can see. It gets rid of the opaque mechanism of traditional centralized applications and uses blockchain intelligence. The contract technology guarantees the relative fairness of the gameplay. In layman’s terms, developers can’t “out of the ordinary”.”
According to the police handling the case, the online casino has quickly accumulated a large number of loyal fans since it went online in August 2018. The average daily betting amount is equivalent to more than 10 million yuan, and the peak number of active gambling personnel reached more than 10,000. In order to avoid the attack, the online casino declared to be a legal overseas application and does not provide services to mainland China. However, the police analyzed the player accounts on the daily profit list and found that nearly half of the gamblers were domestic personnel. Zhi Sheng, deputy captain of the three major teams of the Internet Security Division of the Yancheng Public Security Bureau, said: “The cross-border online gambling we have cracked down in the past years was to use illegal fourth-party payment platforms to recharge and withdraw money and transfer stolen money through underground banks. The crackdown on cross-border online gambling and underground money houses has gradually deepened, and more and more gambling platforms have begun to support digital currency recharge by taking advantage of the difficult-to-track feature of digital currency to avoid supervision and attack. But in this case, the gambling The platform goes one step further and applies blockchain smart contract technology to every gambling game.”
The police handling the case analyzed more than 27 million transaction data and sorted out the 26 contract addresses used for betting, lottery and prize distribution in various games of the casino, and found that a large amount of profitable funds flowed to four suspicious accounts. . The police quickly found a breakthrough from these four collection accounts, and the main criminals of the gang Xie, Liu, Hu and others emerged one after another. After clarifying the organizational structure of the gambling platform, in December 2020, the Jianhu police were divided into five groups and successively arrested 14 criminal suspects headed by Liu in Guangzhou, Shanghai, and Chuzhou, Anhui. Wang Fenghua, deputy head of the Internet Security Brigade of the Jianhu County Public Security Bureau of Yancheng City, told reporters: “The suspects once set up their dens in Hong Kong. The epidemic broke out in early 2020. They thought they had returned to Guangzhou unconsciously and set up new locations. Continue to engage in illegal and criminal activities, which also provides conditions for our arrest.”
Through the analysis of back-end data, the police also found that there are two digital currency exchanges in Shenzhen and Xiamen that are providing gambling platforms with promotion drainage and fund settlement services, and they are drawn from them, which is equivalent to more than 5.4 million yuan in total. On January 15 this year, the Yancheng Jianhu police once again carried out a centralized collection of the two criminal gangs suspected of providing conditions for gambling in the special operation of the Ministry of Public Security “Net Net 2021″ and arrested 11 suspects. Zhi Sheng introduced: “The domestic crackdown on the two types of illegal and criminal activities that use blockchain contract technology to open casinos and digital currency trading platforms to help promote settlement is still blank. We have the strong support of the Ministry of Public Security and the Provincial Public Security Department. We were able to carry out a full chain attack on this case.”
At present, the public security organs have found that there are more than 73,000 people participating in gambling on the platform, involving 17 countries and regions at home and abroad, involving 8 billion yuan in funds and more than 60 million yuan in illegal income. The successful investigation and handling of this case is another major result of Yancheng Public Security’s crackdown on new types of cyber crime, effectively purifying the cyber ecological environment.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.