E-Sports Entertainment, LLC, to pay $1 million for hijacking customers’ computers for Bitcoin Mining

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E-Sports Entertainment, LLC, to pay $1 million for hijacking customers' computers for Bitcoin Mining
E-Sports Entertainment, LLC, to pay $1 million for hijacking customers' computers for Bitcoin Mining

E-Sports Entertainment, LLC, to pay $1 million for hijacking customers' computers for Bitcoin Mining

Hijacking its customers’ computers to create Bitcoins became expensive for E-Sports Entertainment, LLC, a video games company as it agreed to settle a case in which it will be paying $1 million. In a statement acting Attorney General John J. Hoffman, the Division of Law and the Division of Consumer Affairs announced that the settlement resolves allegations from customers.

Earlier, thousands of customers had complained E-Sports Entertainment, LLC, infected their computers with malicious software code that enabled the company to monitor what programs subscribers were running an illegally mine for Bitcoins. Allegedly, the customers who subscribed to the company’s anti-cheat services for popular on-line video games felt cheated.

The affected customers complained that E-Sports Entertainment, LLC introduced the malicious code that enabled E-Sports to monitor their computers even when they were not signed onto or using E-Sports services.

Botnet Creation and Controlling Thousands of Customers

For Bitcoin mining computer processing power is essential and miners need to have access to a lot of computer chips; however, as many of them do not have access to such a quantity they create botnet which they use to get access to other computers that they actually they do not own and the similar fashion E-Sports created a botnet.

The affected customer alleged that E-Sports took control of approximately 14,000 computers in New Jersey and across the nation to generate approximately $3,500 by mining for Bitcoins. Showing his happiness on settlement AAG Hoffman said that this is an important settlement for New Jersey consumers.

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AAG Hoffman said that E-Sports Entertainment, LLC illegally hijacked thousands of people’s personal computers without their knowledge or consent and not only gained the ability to monitor their activities, but used them for Bitcoin mining that had real dollar value. He thinks that this case should serve as a message that we are committed to protecting New Jersey consumers.

E-Sports Entertainment, LLC to Refrain from Deploying Botnet

Now the company has agreed not to deploy botnet and affect customers’ computers for Bitcoin mining and submit itself to a 10-year compliance program. The company will create a dedicated page on its Web site which will clearly write about the type of data it collects, the manner in which the data is collected, and how the information is used, etc.

Under the settlement E-Sports are paying the State $325,000 of its $1 million settlement obligation. Additionally, the remainder will suspended and will be vacated within 10 years, if the company follows the conditions of the settlement and avoids future violations of the existing and future laws.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com