Ukrainian authorities have arrested a 35-year-old man from the Poltava region for allegedly hacking into thousands of hosting accounts and using the stolen access to mine cryptocurrency, resulting in more than $4.4 million in damages. The suspect is accused of running an elaborate cryptojacking operation that compromised servers from a

• The hacker used over 5,000 hosting accounts to mine cryptocurrency illegally.
• Damage to the hosting firm was estimated at over $4.4 million.
• Faces up to 15 years in prison if convicted.

Ukrainian authorities have arrested a 35-year-old man from the Poltava region for allegedly hacking into thousands of hosting accounts and using the stolen access to mine cryptocurrency, resulting in more than $4.4 million in damages. The suspect is accused of running an elaborate cryptojacking operation that compromised servers from a major international hosting provider.

The country’s National Police Cyber Department announced on June 4, stating that the hacker had been conducting unauthorized intrusions into corporate infrastructure since at least 2018.

According to investigators, the accused gained illicit access to over 5,000 customer accounts belonging to a global hosting provider that rents server space for websites and online platforms. By exploiting security vulnerabilities, he supposedly installed unauthorized virtual machines and crypto mining software that rerouted immense amounts of computing power to produce cryptocurrency, thus benefiting himself.

This type of activity, generally known as cryptojacking, involves stealing resources without paying for them. Authorities estimate the total damages to the hosting company at over 185 million Ukrainian hryvnias (approx. $4.4 million USD).

Hacker Tools and Evidence Uncovered Across Multiple Regions

During a search of the suspect’s residence, law enforcement officials seized a cache of digital and physical evidence, including computer hardware, smartphones, bank cards, and crypto wallets. Forensic analysis of the devices revealed tools used for remote access, crypto mining management, and email account authorization data associated with the intrusions.

Additionally, police say the man was an active participant in hacker forums, sharing and sourcing tools used in the attacks. To avoid detection, he frequently relocated between Poltava, Odesa, Zaporizhia, and Dnipropetrovsk regions.

Facing Serious Legal Consequences

The suspect stands charged with offenses under Ukraine’s chapter on interference with electronic communication networks. Upon conviction, such a person may be held to a prison term of 15 years and may be banned from working or engaging in activities related to IT and communications for 3 years. 

The pre-trial investigation is ongoing, and authorities have stated that additional charges may follow as they continue to examine the extent of the operation.

This case follows a similar one in the United States in April, where a man was charged with wire fraud and money laundering after allegedly exploiting cloud computing services to run a $970,000 crypto mining scheme.

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