Cryptocurrency Theft Involved Traffic Redirection

LOS ANGELES — With more online companies accepting cryptocurrency as an alternative payment, there have been more reported instances of cybercrimes.

In the latest case, a Dell research team announced that it discovered a scheme to hijack large amounts of network traffic and redirect cryptocurrency miner connections to a hijacker-controlled mining pool, resulting in $83,000 stolen from accounts in four months.

The scheme, Dell researchers said, involved BGP hijacking, which has been discussed for more than 16 years by Internet security experts, to shake cryptocurrency out of the hands of miners.

Hackers in the late 1990s testified to Congress that they could use a BGP attack to take down the Internet in 30 minutes. In 2013, the BGP hijacking scheme redirected a portion of U.S. traffic to Iceland and Belarus.

Border gateway protocol, or BGP, connects networks on the Internet, such as Time Warner and Comcast, to become aware of other networks' existence. Both ends of BGP-connected networks must be manually configured to communicate, ensuring that malicious networks can't hijack traffic without human intervention from a legitimate network.

Dell researchers said the scheme involved bogus BGP broadcasts to redirect traffic to the hijacker's server. In the end, perpetrators were able to steal Bitcoin, Dogecoin, HoboNickels and Worldcoin.

"Hijackers harnessed miners' hashing power by redirecting legitimate mining traffic destined for well-known pools to a malicious server masquerading as the legitimate pool," Dell researchers said.

With cryptocurrency, "mining" is the act of validating transactions listed in the public ledger— also known as the block chain, which entails crunching numbers to satisfy a particular formula while simultaneously agreeing as network that the calculated results are valid.

"Hijackers harnessed miners' hashing power by redirecting legitimate mining traffic destined for well-known pools to a malicious server masquerading as the legitimate pool," Dell researchers said of the scheme uncovered.

In total, Dell researchers documented 51 compromised networks from 19 different ISPs, including Amazon, Digital Ocean, OVH and other large hosting companies between February and May 2014.

"All malicious BGP announcements were traced to a single router at an ISP in Canada. The hijacker likely fits one of the following descriptions: A rogue employee of the ISP,  a rogue ex-employee of the ISP with an unchanged router password, or a malicious hacker," the researchers said.

Online adult companies have come to embrace cryptocurrencies as a substitute for traditional methods of processing transactions. MindGeek, SCORE Group, Naughty America, Wicked Pictures, Porn.com, Grooby.com, DominicFord.com, ClassyCams.com and MetArt.com, among other adult brands, take cryptocurrencies. Internet payment service provider Verotel also accepts bitcoin for transactions.

   

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Op-Ed: The Guardian's XBIZ Amsterdam Podcast Dismisses Creators' Experiences

British newspaper The Guardian’s podcast coverage of XBIZ Amsterdam 2025 purports to investigate the power dynamics of today’s online adult industry. Instead, it ignores creators’ voices, airs tired and outdated preconceptions about the business, and rehashes the unsupported claims of anti-pornography crusaders.

Eva Maxim, BranditScan Launch 'Killer' Promo

Eva Maxim and BranditScan have partnered for the Killer Creator Giveaway promotion.

2026 XBIZ Exec Awards Nominees for Online Industry Announced

XBIZ is pleased to announce the nominees for the online industry edition of the 2026 XBIZ Exec Awards, set to be presented as part of the annual XBIZ Honors ceremony on Wednesday, Jan. 14 in conjunction with the XBIZ 2026 digital media conference.

AEBN Publishes Report on POV Trends

AEBN has published a report on POV and gonzo categories from its straight and gay theaters.

Joybear Pictures to Launch 'I Really Love' Studio Imprint

Joybear Pictures has announced that its new studio imprint, I Really Love, will launch in January.

Pineapple Support to Host 'Life Transitions' Support Group

Pineapple Support is hosting a free online support group on navigating transitional and liminal spaces.

CamSoda Launches 'Trick or Tease' AI Companions

CamSoda has launched its Halloween-themed Trick or Tease AI companions.

Russian Lawmakers Call for Age Verification

Two Russian lawmakers have called on the country’s government to implement age verification for adult content.

British Documentary Spotlights XBIZ Amsterdam With Candid Conversations

British creator and host Josh Pieters traveled to XBIZ Amsterdam to film a documentary about the annual European adult industry conference.

XBIZ 2026 to Debut 'New Talent Go-See' Special Event

XBIZ 2026, North America’s premier adult industry conference, will debut a special event designed to help new talent jump-start their careers: the New Talent Go-See.

Show More