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ESEA Bitcoin Scandal: $1M Settlement
Written by   - Wednesday, 20 November 2013  (9 Comments )

"Acting Attorney General John J. Hoffman, the Division of Law and the Division of Consumer Affairs announced today that on-line video gaming company E-Sports Entertainment, LLC, has entered into a $1 million settlement that resolves allegations it infected thousands of personal computers with malicious software code enabling E-Sports to monitor what programs subscribers were running and illegally mine for bitcoins."

This is the beginning of the announcement regarding the settlement in a consumer protection complaint filed by the state of New Jersey against the company responsible for the bitcoin scandal among ESEA users. K1ck has attended ESEA CS:GO Invite Season 14, but refused to attend the LAN Finals and subsquent seasons.

 

ESEA Bitcoins

"According to the complaint, the malicious code enabled E-Sports to monitor users’ computers even when they were not signed onto or using E-Sports services. E-Sports also created a botnet – a network of computers running malicious software -- using its customers’ computers. The botnet used the computing resources of users’ computers to mine for bitcoins, a virtual form of currency. It is estimated that, during a single two-week period, E-Sports took control of approximately 14,000 computers in New Jersey and across the nation, and generated approximately $3,500 by mining for bitcoins."

"As part of its settlement with the State, E-Sports has agreed to refrain from deploying software code that downloads to consumers’ computers without their knowledge and authorization. The company also must submit itself to a 10-year compliance program and create a dedicated page on its Web site that specifies what type of data it collects, the manner in which the data is collected, and how the information is used."

"E-Sports must pay the State $325,000 of its $1 million settlement obligation. The remainder is suspended and will be vacated within 10 years, provided the company adheres to all settlement terms and avoids future violations of the law."

Way to go New Jersey!

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