U.S. cybersecurity experts plead guilty for ransomware attacks, face 20 years in prison each — group demanded up to $10 million from each victim
These cybersecurity experts were hired to prevent the exact attacks they perpetrated.
Two former cybersecurity experts pled guilty to conspiracy to obstruct commerce by extortion and are set to be sentenced up to 20 years in prison each for attacking several U.S. companies with ransomware and holding their data hostage for up to $10 million. BleepingComputer reported that the two offenders were former employees of Sygnia and DigitalMint — cybersecurity incident response firms that help companies that have been affected by ransomware and other cyberattacks.
“These defendants used their sophisticated cybersecurity training and experience to commit ransomware attacks — the very type of crime that they should have been working to stop,” Assistant Attorney General A. Tysen Duva said in a statement. “Extortion via the internet victimizes innocent citizens every bit as much as taking money directly out of their pockets. The Department of Justice is committed to using all tools available to identify and arrest perpetrators of ransomware attacks wherever we have jurisdiction.”
Ryan Clifford Goldberg, 40, of Watkinsville, Georgia, was a Sygnia incident response manager, while Kevin Tyler Martin, 36, of Roanoke, Texas, was a ransomware threat negotiator for DigitalMint. Another unnamed co-conspirator had the same position as Martin at DigitalMint, but they haven't been identified yet. According to the Justice Department, the three people tapped the ALPHV BlackCat ransomware-as-a-service for their activities, paying its administrators a 20% cut of their proceeds.
The three conspirators attacked several U.S. companies across different states, including those based in Maryland, California, Florida, and Virginia. Of all the victims, court records show that only a Florida-based medical device maker paid a ransom of $1.27 million — a fraction of the $10 million the group demanded from the company. After paying BlackCat’s 20% cut, the group split the remainder three ways and laundered the Bitcoin through different channels.
Neither the DOJ nor the United States Southern District Court of Florida mentioned how the two were caught, so we don’t know what led to their arrest — nevertheless, Goldberg has been in federal custody since September 2023. The FBI Miami Field Office was the main agency behind this investigation, and has been assisted by the U.S. Secret Service. Aside from their arrest, indictment, and sentencing, the Southern District of Florida is also handling the asset forfeiture case, meaning the perpetrators will likely yield the proceeds of their crime to the victims or the state.
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Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.
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alrighty_then You can make a good living in tech without going black hat. Did they owe the mob or something? Glad they were caught.Reply -
Sluggotg I hope they do get 20 years. We have all seen people commit horrid crimes and get 5 years. They need to make an example out of these guys.Reply -
inquisitor2 So you steal from companies and it's 20 years....you crash the housing market and destroy millions of people's lives....you get... light regulations in place until the next corrupt administration removes them.....and start again with a brand new name for the same bs product. But let the outrage ring out for these horrid crimes.....horrid.....lol....1.2 million that was probably insured or will be a writeoffReply -
bill001g Reply
Seems to be federal charges so they likely will have to do more than many of the states that let everyone out after a fraction of the time. If you asked for volunteers to go to jail and you paid them a million dollars a year they would have a line miles long. People embezzle a couple hundred thousand and get probation. Can't even really order them to pay it back because with a felony conviction for theft nobody is going to hire them, they will be very lucky to get even a minimum wage job.Sluggotg said:I hope they do get 20 years. We have all seen people commit horrid crimes and get 5 years. They need to make an example out of these guys. -
Hooda Thunkett They probably told sever companies "do these things to shore-up your security or you'll get pwned." The companies said "nah, that'll cost money. Don't." They got hacked.Reply
Then these guys said "don't pay them, it'll just encourage them and we can just restore from backups." The companies complained "That'll take too long. We're losing money while we do that. Pay the bad men."
Then these guys looked at each other and said "We're definitely on the wrong side of this."
Or not. Maybe these guys just suck. -
lmcnabney Making it illegal to pay ransom would go a long way toward solving these problems. Also, cutting the extortionist's hands off might help too.Reply