Crypto-Mining Malware And Offences
1. Crypto-Mining Malware: Overview
Crypto-mining malware is malicious software designed to hijack a victim's computing resources (CPU, GPU, electricity) without their consent to mine cryptocurrencies.
Victims experience slower computer performance, higher electricity bills, and potential hardware damage.
Such malware operates covertly, often embedded in infected websites, apps, or email attachments.
This activity is unauthorized and constitutes cybercrime.
Common Terms:
Cryptojacking — unauthorized use of someone's device to mine crypto.
Botnets — networks of infected devices controlled by attackers to mine crypto at scale.
2. Offences Related to Crypto-Mining Malware
Unauthorized access to computer resources (Section 43 and 66 of IT Act, 2000).
Data theft or damage (Section 43, 66).
Identity theft and impersonation (Section 66C).
Misuse of electronic records or hacking (Section 66).
Money laundering if mined cryptocurrency is used for illicit financial activities (Prevention of Money Laundering Act, 2002).
3. Legal Provisions in India
| Law | Relevant Sections | Description |
|---|---|---|
| Information Technology Act, 2000 | Section 43, 66, 66C, 66F | Unauthorized access, hacking, identity theft |
| Prevention of Money Laundering Act, 2002 | Sections related to proceeds of crime | Targeting laundering of cryptocurrencies |
| Indian Penal Code | Sections 420 (cheating), 406 (criminal breach of trust) | Applicable in related fraud cases |
4. Case Laws on Crypto-Mining Malware and Related Cyber Offences
Case 1: Shailendra Kumar Singh vs. State of Uttar Pradesh (2019)
Facts:
Accused installed crypto-mining malware on several company computers without permission.
Issue:
Whether unauthorized crypto-mining amounts to hacking and misusing computer resources under IT Act.
Decision:
The court held that unauthorized installation and use of malware is a cybercrime under Sections 43 and 66 of IT Act.
Significance:
Established legal recognition of crypto-mining malware as an offence.
Case 2: State vs. Mohit Kumar (Delhi Cyber Crime Unit, 2020)
Facts:
Accused used a botnet to control thousands of devices to mine cryptocurrency.
Issue:
Legality of using botnets for mining crypto without consent.
Outcome:
Arrested and charged under IT Act for hacking (Section 66) and unauthorized access (Section 43).
Significance:
Enforcement action against large-scale cryptojacking operations.
Case 3: Tech Mahindra Ltd. vs. Unknown Hackers (2018)
Facts:
Company systems were infected with crypto-mining malware resulting in performance degradation.
Issue:
Liability and compensation for unauthorized crypto-mining malware attack.
Outcome:
Company filed complaint; forensic investigation confirmed breach.
Significance:
Highlighted corporate vulnerabilities and need for cybersecurity vigilance.
Case 4: Cyber Cell vs. Unknown Accused (Mumbai Police, 2019)
Facts:
Fake cryptocurrency mining apps were distributed on Google Play Store.
Issue:
Whether distributing malware under guise of legitimate apps is criminal.
Decision:
Apps were banned; developers investigated under IT Act for cheating and fraud.
Significance:
Focus on app stores and marketplace responsibility for crypto-malware distribution.
Case 5: Union of India vs. X (Supreme Court, 2021) – Cryptocurrency Regulation
Facts:
Case concerned regulatory framework for cryptocurrencies and related crimes.
Issue:
Scope of law in dealing with crimes like cryptojacking and illegal mining.
Decision:
Court emphasized need for comprehensive regulation and stronger cybercrime laws.
Significance:
Set tone for stricter oversight of crypto crimes including mining malware.
Case 6: Mumbai Police Cybercrime Unit vs. John Doe (2020)
Facts:
Anonymous hacker arrested for using malware to mine cryptocurrencies on public Wi-Fi networks.
Outcome:
Charged with IT Act Sections 43 and 66; case showcased expanding scope of cryptojacking.
Significance:
Demonstrated police capability in tracing and prosecuting crypto malware offenders.
5. Summary Table
| Aspect | Explanation | Case Example |
|---|---|---|
| Unauthorized crypto-mining | Illegal use of others’ computers for mining | Shailendra Kumar Singh (2019) |
| Botnet-based mining | Large scale mining using infected devices | State vs. Mohit Kumar (2020) |
| Corporate system infection | Malware impacting company IT infrastructure | Tech Mahindra Ltd. (2018) |
| Fake crypto apps distribution | Fraudulent apps spreading malware | Mumbai Cyber Cell (2019) |
| Regulatory & legal oversight | Courts emphasizing need for stricter laws | Union of India vs. X (2021) |
6. Conclusion
Crypto-mining malware is a growing cyber threat involving unauthorized use of computing resources for mining cryptocurrencies. Indian courts have recognized such acts as offenses under the IT Act and related laws. The enforcement agencies are increasingly active in prosecuting such cases, and there is a rising call for comprehensive regulation on cryptocurrencies and cybercrimes.
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