A longtime cybercriminal was sentenced to 16 years in prison for creating and running Ransom Cartel, a ransomware strain linked to attacks on at least 18 companies between 2021 and 2023, the Justice Department said Wednesday. 

Maksim Silnikau, a Belarusian national, actively participated in Russian-speaking cybercrime forums since at least 2005, and was a member of the cybercrime site Direct Connection from 2011 to 2016, officials said. The 40-year-old created Ransom Cartel and began recruiting participants from cybercrime forums in 2021. 

Silnikau and his co-conspirators attempted to extort at least $5.2 million from victims during the multi-year scheme. 

Victims included a group of law firms, medium-sized businesses, a small medical technology startup, educational institutions and large multinational corporations based in California, New York, Nebraska and elsewhere. Some of the victims’ operations were disrupted for several months, officials said. 

Officials said Silnikau provided his co-conspirators information and tools to attack systems, including stolen credentials and mechanisms to encrypt compromised computers. He also built a site to monitor and control ongoing attacks, communicate with co-conspirators and victims, negotiate payment demands with victims and manage the distribution of funds between co-conspirators. 

Silnikau, also known as “J.P. Morgan,” “xxx,” and “lansky,” fled from Spain while awaiting extradition to the United States and was arrested in Poland in July 2023 as he tried to return to Belarus, according to court records. He was extradited to the United States in August 2023. 

Ransom Cartel’s operations ended when Silnikau was arrested. Authorities applauded his capture at the time, noting that Ransom Cartel didn’t grow large enough to inflict losses comparable to larger ransomware variants. 

Silnikau pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft.

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A Canadian man pleaded guilty to playing a central role in one of the most far-reaching cyberattacks of 2024 — the widespread compromise of more than 165 Snowflake customer environments, resulting in massive data theft for extortion, the Justice Department said Wednesday. 

Connor Moucka earned $495,000 by extorting his victims, offering stolen data for sale online, and in one case re-extorted a victim with stolen data of a government official and members of a then-former government official’s immediate family, authorities said.

Moucka and his alleged co-conspirators John Binns and Cameron Wagenius stole billions of sensitive records and received more than $2.5 million in extortion payments combined, according to prosecutors. Victims of the attack spree included AT&T, Ticketmaster, Advance Auto Parts and Santander.

“Hiding behind a screen is no shield from justice,” Brett Leatherman, assistant director of the FBI’s Cyber Division, said in a statement. “Moucka learned that when he was arrested just months after he began targeting U.S. companies, stealing sensitive information, and extorting victims for millions of dollars.”

Authorities arrested Moucka relatively quickly because he caused significant damage, said Allison Nixon, chief research officer at Unit 221B. 

“His gang went on a spree of maximizing harm, which directly correlated to maximizing the resources devoted to stopping it,” she said. 

“His behavior was bizarre throughout. Even while stealing data and extorting victims, he did many unnecessary things like threatening me because he thought I was working on his case. I was not working on his case before he threatened me,” Nixon added.

Moucka, who used several aliases online, including “Waifu,” “Judische,” “Catist” and “Ellyel8,” was arrested Oct. 30, 2024, in Kitchener, a city in the Canadian province of Ontario, at the behest of U.S. authorities. He was extradited to the United States in March 2025.

Moucka and his co-conspirators used stolen credentials to access the data storage platform’s customers’ accounts en masse. Records of more than 100 million people were exposed by the data theft campaign, including call and text history records, banking and other financial information, payroll records, government ID numbers and other personally identifiable data. 

Officials said victim companies bore more than $9.5 million in losses combined, not including losses attributable to their respective customers. 

Moucka’s threats and re-extortion tactics were calculated and predatory, and his actions did real harm to his victims, be they companies targeted for theft and extortion or the millions of everyday people who are their customers,” W. Mike Herrington, special agent in charge of the FBI Seattle field office, said in a statement.

Researchers said Moucka and his co-conspirators are all associated with The Com, a sprawling cybercriminal network of minors and young adults who engage in violence, extortion, sextortion and various forms of cybercrime.

“His legacy is one of failure. He extorted and then scammed his victims by not deleting the data, casting doubt on all future pay-or-leak extortion gangs,” Nixon said. 

“The pay-or-leak business model was popularized by him and his gang,” and his claims of data deletion were a lie, she added. “With copycat gangs, defenders grapple with the uncertainty of whether the threat actors are honest.”

Moucka pleaded guilty to computer fraud, wire fraud, aggravated identity theft and a related conspiracy. He is scheduled for sentencing Oct. 27 and faces up to 32 years in prison.

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TeamPCP, the threat actor behind an unrelenting flurry of attacks on open-source software this year, has been active much longer than previously thought, according to research Oligo Security shared exclusively with CyberScoop. 

The threat actor, which gained notoriety and has captivated threat hunters as it compromised and injected malicious code into more than 1,000 software packages in less than four months earlier this year, was also responsible for attacks dating back to 2020, Oligo Security found. 

The security vendor’s research team found multiple attacks that bear the markings of TeamPCP, including a late 2025 campaign involving the exploitation of a ShadowRay vulnerability that resulted in the first self-propogating botnet running on hijacked AI infrastructure.

Evidence uncovered during that investigation into the ShadowRay 2.0 campaign was linked to more historical attacks originating from the same IPs, domains and other infrastructure TeamPCP used in attacks that captured widespread attention earlier this year. 

“The scariest thing in this campaign is the speed at which the payloads evolved and changed and adapted to the environment they run in. We saw changes in the speed that we’re not used to seeing in these kinds of attacks. They’re usually slow, careful,” said Uri Katz, director of research at Oligo Security. “This was clearly with the help of AI — the payloads changed rapidly to adjust and change to the environment that they were trying to attack.”

One of the domains that Oligo Security identified in July 2025 was in the profile of TeamPCP’s official GitHub account, said Avi Lumelsky, AI security researcher at Oligo Security. “It’s public, they’re not even trying to hide their identity,” he said. 

From there, Oligo linked TeamPCP to activity tracked under multiple names, including TA-NATALSTATUS and IronErn, spanning from 2020 to late 2025. Much of that activity was traced to the same IPs, domain names, a file server and command-and-control server, researchers said. 

TeamPCP emerged publicly as a brand in late 2025. Soon after, “TeamPCP started to go really broad and do campaigns, which are much more noisy,” said Gal Elbaz, co-founder and CTO at Oligo Security. 

Widespread adoption of AI and TeamPCP’s use of the technology supported this growth as the threat actor built a brand, got more active on social media and boasted publicly about its activities and claimed victims.

“The ability to control the infrastructure and orchestrate the attack with AI was also super new, and I’m sure it helps them,” Elbaz said. 

“All of the companies in the world are in this race to adopt AI because they are afraid their business will die, and they understand, of course, the opportunity. But it’s also what gives the attacker this power to go into it,” he added. “If you don’t really have visibility in what’s going on there or how it behaves, that’s exactly what attackers are after.”

TeamPCP’s more recent attacks have capitalized on new security gaps created by developers’ increasing reliance on AI and the automated systems companies use to deploy code. The threat actor is also consistently wrecking the open-source frameworks and software packages these systems rely on. 

“Most AI infrastructure is open source by design because nobody has the manpower and money to develop everything from scratch,” Lumelsky said. 

“We love open source. We use many of these products ourselves, but it’s all about reading the documentation, and I think many of these tools place the responsibility of using it right and security on the user, and developers are not used to these new kinds of animals,” he added. “That’s why the trust can be exploited at scale.”

As it uncovered a long operational history spanning multiple campaigns, Oligo Security has gained more confidence in understanding how TeamPCP operates. It also means TeamPCP was likely involved in other attacks that haven’t been attributed to it yet or attacks that haven’t been detected. 

“There’s a lot more out there that we haven’t caught or been able to prove up until now,” Elbaz said.

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In less than four hours early Tuesday, an attacker compromised a GitHub maintainer account and unleashed a self-replicating piece of malware which injected malicious code into more than 440 distinct npm packages, according to multiple security firms. 

The worm, built on the open-source Mini Shai-Hulud repository that TeamPCP published in May, was initially let loose in keyv, a data management interface software package with more than 600 million monthly downloads. The attacker spent the next 30 minutes compromising additional packages controlled by the same maintainer, including cacheable, flat-cache, file-entry-cache.

The attack spread to other maintainers, eventually compromising more than 860 packages with a “combined total of over 2 billion monthly installs,” Ilyas Makari, malware researcher at Aikido Security, wrote in a blog post. 

Wiz researchers told CyberScoop it hasn’t observed any new malicious packages since the initial wave moved through a massive footpoint of cloud and code environments in those first four hours. 

“This is the most critical initial compromise, with over 155 million weekly downloads on the root packages,” Wiz Research said in an email. 

Some of the compromised packages, including keyv, flat-cache and file-entry-cache, are present in more than 46% of all cloud environments, according to Wiz. “By comparison, back in the Shai-Hulud 2.0 campaign the most prevalent packages were only in about 28% of environments,” the company said. 

“Time will tell whether the eventual cost and impact outpaces past attacks, or whether adoption of hardening mechanisms such as package aging, and the usage of the relatively less aggressive Mini Shai-Hulud code as basis, will defray the final toll here,” Wiz Research added. 

Researchers from multiple firms sprung into action to monitor the widening attack spree and published indicators of compromise to help potential victims hunt for malicious activity in their systems. 

The Mini Shai-Hulud variant used in these attacks scoops up a trove of sensitive data, including npm, GitHub, AWS and continuous integration credentials. It also steals AI-related configuration files and cryptocurrency wallets, researchers said. 

Microsoft, Aikido, Socket and Wiz all said the same payload and pattern was observed across all affected packages, indicating a single attacker or threat cluster was behind the supply-chain attack and using multiple stolen tokens. 

The malware showcased a few pieces of new functionality, but retained the same core mechanisms that are hallmarks of Mini Shai-Hulud. 

“The evolution is consistent with what we’ve seen from them in past waves, however we don’t yet have the hard links” to confidently attribute the attacks to TeamPCP, Wiz Research said.

The notorious threat actor, which Google previously told CyberScoop it attributes to one core operator that was located in South Africa during at least some of the attacks, compromised and injected malicious code into more than 1,000 software packages in less than four months earlier this year.

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Researchers said INC ransomware, one of the most active ransomware groups globally, has been the main attacker exploiting a pair of SonicWall zero-days soon after they were disclosed last month.

The prolific ransomware-as-a-service operation wasn’t the first group to exploit the flaws, which were actively exploited for three weeks before the vendor disclosed and patched the defects July 14, but it has been the most assertive and concerning group to target and chain both vulnerabilities together for full access.

“Since public disclosure, INC ransomware has emerged as the most commonly named threat actor actively weaponizing this vulnerability chain,” Brett Deroche, director of incident response at Rapid7, told CyberScoop. “While Inc is the name driving the post-disclosure wave, we can’t attribute the full body of exploitation to INC specifically.”

SonicWall did not respond to a request for comment.

The SonicWall vulnerabilities — CVE-2026-15409 and CVE-2026-15410 — are the latest in a series of security issues confronting the vendor’s customers, including actively exploited zero-days, previously disclosed defects, and an attack last year that allowed a state-sponsored threat group to steal the firewall configurations of every SonicWall customer. 

Just last week, Huntress researchers spotted an attack spree that compromised 30 SonicWall customers in less than two days. 

Ransomware groups have taken a special interest in SonicWall. Ten of the 17 SonicWall defects added to the Cybersecurity and Infrastructure Security Agency’s known exploited vulnerabilities (KEV) catalog since late 2021 are known to be used in ransomware campaigns.

INC ransomware, which has claimed nearly 900 victims across 71 countries since it was first discovered three years ago, is just the latest financially-motivated group to target SonicWall customers. 

Researchers haven’t determined how many organizations have been impacted by the latest SonicWall zero-days, including attacks linked to INC ransomware. 

“Attribution here isn’t a single clean answer. The earliest exploitation we observed, beginning June 22, traced back to common hosted infrastructure, though those attacks were largely unsuccessful,” Deroche said. 

“INC’s confirmed activity that we’ve observed came after public disclosure, using different infrastructure and moving from initial access to ransomware deployment in short order. That’s a meaningfully different operational tempo and skill level than what we saw pre-disclosure,” he added. 

Deroche said Rapid7 has successfully prevented data theft and encryption in the majority of recent cases, yet noted ransomware was deployed in at least one case the security vendor observed.

Yet, there could be other attacks outside the purview of Rapid7’s telemetry. INC ransomware has listed multiple new alleged victims on its data leak site, including organizations and government agencies in Australia, the United States, the United Arab Emirates, Colombia and Switzerland, Resecurity said in a blog post Saturday.

The company said it has aided several victims with incident response, and learned multiple victims received emails and phone calls from alleged hackers who pressured them to engage in negotiations.

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While AI is supposed to help defenders, it’s now creating more than twice as much noise as human-triggered incidents CrowdStrike detects as potentially malicious. The company’s threat hunting team and systems triaged an average of 14 million detection leads daily, resulting in about 36,000 customer alerts during the one-year period ending in June.

“AI agent-driven behaviors have surged past human triggers,” said Adam Meyers, senior vice president of counter adversary operations at CrowdStrike. “AI has driven the detections significantly above what humans are causing, and this gives you a sense of how frequently AI is being used, and really just that it’s being used everywhere.”

The threat posed by AI showed up incessantly during the past year, sparking alarming shifts and heightened targeting across software defects, open-source supply chains and AI tools themselves — all of which create greater difficulties for defenders, CrowdStrike said in its annual threat hunting report. 

“The AI tools that are being implemented by every enterprise across the globe right now are also creating an extended attack surface,” Meyers said during a press briefing. 

“AI is now a tool, a target, and a force multiplier for adversaries,” researchers wrote in the report, adding that AI-enabled malicious activity surged 89% during the past year as attackers used the technology to scale operations, hasten tradecraft and target AI infrastructure.

Attackers are using frontier AI models to uncover vulnerabilities and develop resources, including AI-generated scripts, payloads and commands that increase their effectiveness and efficiency. The technology also allows threat groups to design more creative ways to run automated attacks and boost impact by manipulating, interrupting or sabotaging AI systems and data.

“AI is both the weapon and the target,” Meyers said. 

Most organizations don’t view it as such, and thus far haven’t secured or put proper guardrails around the AI tools they use or address the ways attackers can use AI against them, he added. 

AI’s mark on vulnerabilities is particularly concerning, as reflected by what Meyers described as “one of the scarier stats” in this year’s report: 88% of vulnerabilities were weaponized through AI within 48 hours. 

“This is creating a rich ecosystem of vulnerabilities for attackers to use against various systems,” he said. It also renders the 30-day patch window obsolete, forcing organizations to struggle under a new baseline patch cycle of 24 to 48 hours, according to Meyers.

The AI ecosystem also became the next software supply chain battleground during the past year, as evidenced by TeamPCP’s rampage through open-source software in the first half of this year. 

The threat cluster compromised more than 300 software dependencies in one day, Meyers said. 

AI tools are already in the crosshairs and the attack surface will continue to grow as agentic systems, AI application integrations and dependency managers for AI agents proliferate, the report concluded.

“The same AI tools driving modern businesses are creating under-defended attack surfaces that adversaries are exploiting,” Meyers said. “We have to secure AI. This is absolutely critical.”

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A 41-year-old Ghanaian national was sentenced to 85 months in prison for stealing more than $10 million from mostly older, lonely and vulnerable victims via romance scams, the Justice Department said Tuesday. 

Derrick Van Yeboah was a longtime and high-ranking member of a criminal organization primarily based in Ghana linked to more than $100 million stolen from romance scams and business email compromises, officials said. Van Yeboah served as a “sakawa boy,” impersonating fake romantic partners and directly interacting with victims online from February 2015 to October 2024.

“Romance scammers do not simply steal money — they weaponize trust,” Jay Clayton, U.S. attorney for the Southern District of New York, said in a statement. 

Van Yeboah was arrested in Ghana in June 2025, acting on a request from the Justice Department, and extradited to the United States two months later. He pleaded guilty to conspiracy to commit wire fraud and agreed to forfeit $10.15 million in fraudulent proceeds as part of a plea agreement in March.

Authorities said they identified at least 20 of Van Yeboah’s victims, noting that some were deceived into sending their money to the criminal organization, creating companies and using those entities to unwittingly launder funds from other victims. 

Victims include a woman from Delaware who either sent or laundered $1.9 million, a woman from Ohio who sent or laundered $2.3 million and another woman who sent or laundered about $1 million. Van Yeboah also tricked a North Carolina man to send $123,000, claiming he needed a loan to pay for his mother’s funeral expenses and to remove imaginary gold and diamonds from storage in Italy, according to court records.

Officials said Van Yeboah received a substantial amount of money from his criminal acts. He told pretrial services his assets include a house worth $1.5 million and jewelry worth $515,000. When he was arrested, Ghanaian police found him in possession of two vehicles stolen from the United States and Canada.

“Victims lost large portions of their life savings, money they had counted on for retirement. They were emotionally devastated to learn that the personas they had been talking to every day, personas who claimed to be in love with them, were in fact frauds,” Clayton wrote in a pre-sentencing letter to the court. 

Van Yeboah’s conduct was cruel, and he fully understood the financial and emotional harm he was causing to his victims, he added. 

“Van Yeboah’s conduct was far from an aberration. Van Yeboah engaged in the fraud scheme for nine years. It wasn’t isolated conduct; it wasn’t a blip,” Clayton wrote. “Indeed, it appears to be the only real job Van Yeboah has ever had. Day after day, for years, he targeted vulnerable victims, lied to them, and stole from them.”

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Huntress researchers spotted an active and ongoing series of attacks targeting SonicWall VPN and firewall accounts, which compromised 30 organizations in less than two days, the company said in a threat advisory Tuesday.

The credential stuffing campaign started Saturday and grew rapidly, ultimately compromising 92 unique user accounts during the next 41 hours, according to Huntress. Researchers said the attacks were broad and opportunistic, hitting various SonicWall devices, rather than targeting specific types of organizations.

SonicWall hasn’t released a security advisory about the malicious activity as of press time. A spokesperson told CyberScoop the company is still investigating and hopes to have more information soon.

The attacks ended — at least for now — as abruptly as they began. The last compromise occurred Monday, according to Michael Tigges, principal tactical response analyst at Huntress.

“This fits campaign trends,” he said. “A rash of compromise will break out, followed by silence until the adversary rotates infrastructure.”

Attackers, which haven’t been identified, have also refrained from initiating any post-compromise activity, indicating the intrusions could be pre-positioning for future attacks. 

“With local network access, the sky is essentially the limit for most networks that do not have proper topology controls in place,” Tigges said.

Huntress’ observations are limited to telemetry it collects from its customers, meaning all of the identified victims were Huntress customers using SonicWall devices, so the number of organizations impacted could be greater. 

Researchers haven’t identified a root cause for the attacks, noting that they begin with authorized logins. Attackers are validating credentials against remote access portals to compromise as many vulnerable accounts as possible, the cybersecurity vendor and threat intelligence firm said. 

“This could be an aggregation of stealer malware logs, previously compromised SonicWall configuration files, or historic CVE compromise that resulted in more credentials than the adversary could use at the time,” Tigges said. 

In 2025, an undisclosed state-sponsored threat actor intruded SonicWalls’s cloud environment and stole firewall configurations of every customer. 

SonicWall customers have also been hit by a barrage of actively exploited zero-days, including a pair of zero-days that were exploited for three weeks before the vendor disclosed and patched the defects earlier this month, and previously disclosed defects in SonicWall devices for years. 

Seventeen defects affecting the vendor’s products have been added to CISA’s known exploited vulnerabilities catalog since late 2021. Ten of those defects are known to be used in ransomware campaigns, according to CISA, including a wave of about 40 Akira ransomware attacks between mid-July and early August 2025.

“Edge devices are one of the most targeted interfaces, comprising over 70% of active intrusions triaged by Huntress, including the overwhelming majority of ransomware deployments,” Tigges said. “Organizations that do not spend significant time architecting secure remote access solutions and networks that are resilient to edge-device compromise will likely continue to feel the burn in the coming months and years.”

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AI systems like Anthropic’s Project Glasswing and Microsoft’s MDASH are aiding in the discovery of vulnerabilities, filling the ever-growing pool of defects that defenders have to address before exploitation occurs. Yet, through the first half of 2026, these vulnerabilities were no more or less likely to be exploited than all vulnerabilities disclosed during that period, VulnCheck said in a report Tuesday. 

Concerns remain high about AI-discovered vulnerabilities fueling more attacks, but VulnCheck’s review of exploitation data shows that those fears are unfounded, at least so far. 

Patrick Garrity, security researcher at VulnCheck and report author, identified 1,061 vulnerabilities attributed to AI-assisted discovery during the first six months of the year. Of those vulnerabilities discovered by AI, 14 ( 1.3%) were exploited in the wild, a breakdown that aligns with the exploitation rate researchers observed across all vulnerabilities during the same period. 

“While AI-assisted vulnerability discovery clearly has value for both attackers and defenders, the data does not suggest that AI discovered vulnerabilities are inherently more likely to be exploited than those found through traditional methods,” Garrity wrote.

While AI’s contribution to actively exploited vulnerabilities was muted in the first half of the year, it’s too soon to assume that trend will continue. Moreover, none of these major vulnerability-hunting models were running for that full period. Project Glasswing rolled out in April, while Microsoft’s MDASH and OpenAI’s Daybreak were both unveiled in May.

The upward trend in Microsoft’s monthly Patch Tuesday indicates how much the floodgates might open through the remainder of the year as AI models discover more vulnerabilities. The company’s July security update contained an all-time-record of 622 vulnerabilities, besting the previous record-breaking June update with 206 vulnerabilities.

VulnCheck’s state of exploitation report also found that vulnerabilities were exploited much faster after CVE publication, speeding up from an average of 120 days in 2025 to 80 days during the first half of the year.

The intelligence firm also determined which technology categories were actively exploited most often. Content management systems accounted for nearly one-third of the 495 known exploited vulnerabilities VulnCheck identified during the first half of 2026. Network edge devices were responsible for almost 14%, followed by operating systems at nearly 9%, server software at 8%, and AI products — an emerging attack surface — at almost 6%.

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Botnets powered by residential proxy networks are proliferating, enabling cybercriminals of all types to evade detection by blending in with seemingly legitimate traffic, Lumen Technology’s Black Lotus Labs said in a report Friday.

The global scale of botnets observed by Lumen is currently approaching 60 million victim IP addresses, Chris Formosa, senior lead information security engineer at Black Lotus Labs, told CyberScoop. Roughly 1 in 4 of those compromised IPs are based in the United States, and the true number of infected devices is much greater because there are networks beyond Lumen’s visibility and multiple devices are often unknowingly running a malicious proxy network on the same IP. 

Super-sized botnets are also gaining momentum, according to Lumen, with an average of 10 distinct botnets controlling their own populations of about 1 million active victims daily.

“The only reason these botnets keep getting more and more victims is because there is clearly a market. Aside from criminal activity, who wants access to millions of IPs regularly?” Formosa said. 

That demand for botnets fuels opportunities for growth, reselling, collaboration, and quick rebounds following massive disruptions.

IPIDEA, one of the largest residential proxy networks in operation when its infrastructure was disrupted by coordinated strikes in January, recovered at nearly half-strength within hours and earlier this surpassed its pre-disruption botnet size with a current botnet population of about 10 million IPs, researchers said.

“Their rebuild was eye-opening as they began to rebound from that interdiction,” Ryan English, information security engineer at Black Lotus Labs, told CyberScoop. “Even for how quickly some botnets can rebound, theirs was surprising. We’ve seen them all rebuild, but we haven’t seen anybody do it that fast.”

Meanwhile, botnets are continuously growing, as cybercriminals seek out the cover they provide, more cheap and poorly defended devices hit the market and vendors stop providing security updates for older but still usable products. 

“Your available pool for those proxy hunters grows every year, and it will continue to grow every year,” English said, adding that more than 1 billion devices are currently vulnerable and available to be unknowingly sucked up into botnets.

The challenge for defenders is lopsided, and while disruptions and seizures occur relatively often, botnet operators have formed a global supply chain with pathways that are difficult to break. 

“We have observed multiple residential proxy services collaborating to form what amounts to the largest cooperative network ever seen on the internet,” researchers wrote in the report.

Black Lotus Labs currently tracks more than 30 distinct malicious proxy botnet clusters, and most of those regularly boast more than 100,000 daily victims.

“Our understanding of the various botnets in this space, along with experience in multiple disruptions, leads us to a very important conclusion: taking down a single malicious proxy provider or their botnet in isolation is likely to result in a short-lived solution,” researchers wrote. 

“In recent years, the malicious proxy environment has essentially created the largest collective botnet currently active on the internet, capable of moving millions of IPs within hours to wherever they are needed,” they added. “Until the malicious proxy landscape is properly addressed and regulated on both the private industry and law enforcement sides, this issue will grow and, along with the DDoS botnet landscape, will most likely become a greater problem in the long term.”

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A Russian state-sponsored threat group has been stealing sensitive data from governments and commercial organizations since July 2025 via a novel exploit in popular Linux-based enterprise software, U.S. authorities and cyber officials from more than a dozen other countries warned in a joint cybersecurity advisory Thursday.

Laundry Bear’s most recent espionage campaign involves the exploitation of a zero-day vulnerability in Zimbra Collaboration Suite that wasn’t patched until November 2025, five months after attacks were well underway, officials said. 

The exploit just requires a view — no clicks — and allows attackers to steal the previous 90 days’ worth of email, the account’s password, search history, the victim organization’s email directory, two-factor authentication tokens and other newly created passwords.

“The covert and persistent nature of this activity, along with the absence of any known financial extortion, almost certainly indicates this group’s involvement in espionage activities with Russian government backing,” officials wrote in the advisory. 

“Additionally, extensive Ukrainian targeting, prior to use against U.S. and other NATO allies, outlines an increasing trend within Russian cyber threat groups to target Ukrainian users first—both as a priority target and as a testbench for malicious cyber techniques before broader global deployment.”

The state-sponsored espionage group, also known as Void Blizzard, has compromised governments and organizations in the defense, education, energy, law enforcement, media, finance, transportation and technology sectors. 

Laundry Bear’s year-long campaign involving the exploitation of CVE-2025-66376 showcases more technical capabilities, including a custom JavaScript payload it delivers to targeted victims via phishing emails. The threat group could also likely adapt the novel data exfiltration and aggregation capability, dubbed “beehive,” to exploit other vulnerabilities, officials warned.

The defect’s medium-severity rating of 6.1 underscores the challenge defenders regularly confront in prioritizing patching schedules based on measure of severity alone.

The Russian state-supported group, which has been active since at least 2024, is still actively exploiting Zimbra Collaboration Suite instances that remain unpatched, officials said.

Authorities shared Thursday indicators of compromise, mitigation steps and urged organizations to update their vulnerable software.

“This campaign’s targeted victimology and limited exploitation capabilities likely indicate this group manually identifies and targets the victim organizations” by identifying organizations with public-facing infrastructure, officials wrote in the advisory.

Once a target is identified, Laundry Bear also likely compiles email addresses for users to target with the exploit via phishing emails. Officials did not identify specific victims or describe the volume of organizations already compromised.

The joint cybersecurity advisory was issued by the United States, Australia, Canada, New Zealand, the United Kingdom, Czech Republic, Denmark, Estonia, Finland, France, Italy, Moldova, the Netherlands, Poland, Spain and Sweden.

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Malware targeting AI coding assistants and software developers’ automated workflows is spreading into more environments with more capabilities, placing defenders at a growing disadvantage.

A malware strain dubbed Sandworm_Mode, first discovered by Socket in February, represents a growing threat to software development. According to a CrowdStrike report, the self-propagating worm can spread through code repositories with minimal detection, raising alarms about software supply chains.

The malware’s capabilities are extensive, but not especially unique compared to the series of supply-chain worms known as Shai-Hulud, and more recently Mini Shai-Hulud.

“This is the new trend,” Adam Meyers, senior vice president of counter adversary operations at CrowdStrike, told CyberScoop. “This is something we’re seeing more and more. It’s the new hotness right now.”

Sandworm_Mode targets and steals sensitive data, including credentials, keys and secrets that unlock paths to additional services and dependencies throughout the AI toolchain. This includes AI assistants, cloud providers, API keys for nine major LLM providers, CI/CD pipelines and automated systems that build, test and publish code.

These actions blend in with tens of thousands of other commands occurring daily in any given environment infused with AI development tools. 

“Trying to find the signal of something malicious happening is very difficult because there’s so much noise out there,” Meyers said. 

The worm also paces itself, setting multi-day delays to separate initial access from follow-on malicious activity — creating a gap in victims’ telemetry windows, which makes it even more challenging for defenders to detect and attribute the chain of infection properly. 

“AI agents are pulling down all of these different dependencies continuously throughout the day,” Meyers said. “When you’re looking downrange from the perspective of the security operations team, you’re just seeing everybody pulling down these dependencies, and these dependencies self-unpacking and executing, so it just gets really, really noisy to try to find something bad happening.”

The malware covers its tracks further with a bit of a mean streak, by automatically destroying compromised environments if it can’t spread or accomplish its objectives.

“It’s well thought-through, and well developed, so somebody spent some time caring and feeding this thing,” Meyer said.

Despite CrowdStrike’s four-month review of Sandworm_Mode, the cybersecurity firm has yet to gain a firm handle on its intent, but Meyers said it is designed to attain a strong foothold, which could enable long-term access.

CrowdStrike hasn’t determined who is responsible for the malware, yet Meyers said he doesn’t think TeamPCP, a threat group that’s been on a rampage through open-source software this year, is involved. 

“It could be a nation-state threat actor, or it could be an e-crime actor that’s looking to use this to then sell access to other organizations,” he said. “We don’t really know what the intention is.”

The state of Sandworm_Mode and whether it remains active is also unclear. CrowdStrike said it continues to observe recently active malicious supply-chain packages that follow similar but technically divergent patterns.

Ultimately, “the world has changed,” Meyers said, adding that many attackers are pursuing similar paths in the AI toolchain, requiring defenders and threat hunters to place a greater focus on this burgeoning mode of aggression.

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The people orchestrating North Korea’s IT worker scheme are funneling money through a web of front companies and intermediaries, including sanctioned entities, that partly fund Russia’s war effort against Ukraine, DTEX said in a report Tuesday.

The security firm’s research shows that the scheme is moving beyond funding the country’s weapons program and into a bigger pool that supports many of the regime’s objectives. This includes manufacturing weapons and supplying them to Russia’s military, according to DTEX.

“When we think IT workers, we typically think head down, get your money, support the weapons program,” Michael Barnhart, nation state investigator at DTEX and lead author of the report, told CyberScoop.

“It’s a broad cover-all statement when we say it’s supplying the weapons program,” he said. “That’s the predominant place it goes,” but many other domestic programs and entities tasked with other projects are taking cuts from that pool of money as well. 

Barnhart corroborated previously leaked data from an internal North Korean payment server, which included 390 IT worker accounts, chat logs and transaction data.

He mapped the transactions to organizations that received those funds, including multiple sanctioned entities: Sobaeksu, Saenal, and Songkwang. 

The money trail also showed $1.97 million in payments from North Korean IT workers between December 2025 and February 2026 flowing directly through Korea Ryonbong General Corp, a sanctioned defense entity that procures weapons for the regime’s military programs.

Western officials previously reported that North Korea provided ammunition and weapons to Russia in 2023, and in the fall of 2024 sent upwards of 15,000 soldiers to fight alongside Russian troops, according to the Council on Foreign Relations.

“This is a consequence that is often overlooked,” Barnhart wrote in the report. “Revenue from the IT worker stream does not stop at a resume scam or a payroll-abuse story. It can feed a larger DPRK system that supports sanctioned entities, domestic state needs, and a Russia war effort that is actively consuming all facets of North Korean weapons and military support.” 

Data from the internal North Korean payment server, which was first published by ZachXBT in April, is controlled by “PC-1234,” a single administrator that DTEX has been tracking for a while. The wallet and its cluster of activity remains active, Barnhart said. 

The three months of previous activity attributed to the wallet amounted to more than $2.84 million, which then flowed upward into dozens of organizations. 

“It’s not a top-down funded regime. It’s a bottom-up,” Barnhart said. “Everyone makes money at the bottom and then they take a tiny cut, and then the money goes upwards to what we just blanketly say is the weapons program. But really, it can go a lot more places.”

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A pair of young men were sentenced to 66 months in jail for committing a cyberattack on the Transport for London that brought the network’s operations to a standstill in 2024, the United Kingdom’s National Crime Agency said Thursday.

Thalha Jubair and Owen Flowers were arrested at their homes in September 2025, barely a year after the attack, and pleaded guilty last month just as their trials were set to begin. Flowers was previously arrested in connection with the attack in September, but was released after questioning by officers.

Jubair and Flowers were leading members and highly involved in Scattered Spider, a nebulous hacker subset of The Com, according to researchers. The 20-year-old Jubair was a prolific cybercriminal and core member of the unbound collective. 

U.S. authorities last year accused Jubair of direct, prominent involvement in at least 120 cyberattacks, including extortion of 47 U.S.-based organizations and the January 2025 attack on the federal court system. 

Officials said they traced a combined total of at least $89.5 million in cryptocurrency, at the time of payments, to Bitcoin addresses and servers controlled by Jubair. Two financial services firms paid Jubair $25 million and $36.2 million, respectively, in Bitcoin between June and November 2023, according to an unsealed criminal complaint against Jubair. 

At the time of Jubair’s arrest, “he was one of the four principal people that we associated with Scattered Spider,” and one of the two most core players, Adam Meyers, senior vice president of counter adversary operations at CrowdStrike, told CyberScoop. 

Jubair and Owens had significant resources and support, and “victim payments were reinvested back into the enterprise,” said Allison Nixon, chief research officer at Unit 221B. 

The lasting impact of Jubair and Owens’ capture and imprisonment remains hazy.

U.K. authorities insist Jubair and Owens’ arrests and punishment “effectively halted the group’s criminal activity,” yet they added that other cybercriminals continue to use the Scattered Spider brand in more recent attacks. 

Thursday’s announcement “represents a significant step in holding accountable two members of Scattered Spider, a group that has repeatedly relied on data extortion, SIM-swap attacks, and other social engineering techniques to infiltrate networks and undermine critical services,” Brett Leatherman, assistant director of the FBI Cyber Division, said in a statement. 

The FBI also noted, in a LinkedIn post, that members of Scattered Spider “continue to victimize organizations around the world and cause significant financial and operational harm.”

When Owens, now 18, was first arrested for the Transport for London attack in 2024, investigators said he was “in the process of hacking the systems of U.S. health care companies SSM Health Care Corporation and Sutter Health, which had been infiltrated and damaged.”

Officials also said Jubair and Owens failed to cooperate after their arrests. 

“This is the largest cybercrime prosecution ever brought before the U.K. courts and the culmination of nearly two years of painstaking work,” Paul Foster, head of the National Crime Center’s National Cybercrime Unit, said in a statement. 

“Scattered Spider has been the most significant cybercrime threat to the U.K. in recent years. Through this investigation, we have severely disrupted that threat and brought key offenders to justice,” Foster added.

Despite the upbeat reaction from U.K. officials, Nixon said the punishment for Jubair and Owens is “remarkably lenient considering the period of continuous reoffending lasted longer than the sentence.”

Nixon hopes the United States will eventually extradite the pair to face additional charges. “If that happens, they won’t be able to use mental illness as a loophole to get back to harming society as soon as possible,” she added.

“No one who worked on their case was surprised they would reoffend, and there seems to be no allowance in the law to protect the public from what everyone knew was going to happen,” Nixon said. “I know the narrative in the cybercriminal culture will glorify them, but they wouldn’t if they knew the full story.”

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Three Russian nationals and a pair of bulletproof hosting providers directly supported a series of attacks on critical infrastructure in 21 states and several countries, according to a 2024 indictment unsealed in federal court Tuesday. 

Officials, who have been investigating the trio and their companies since 2019, said the attacks resulted in losses surpassing $62 million.

Alexander Alexandrovich Volosovik, the 43-year-old owner of Media Land; Yulia Vladimirovna Pankova, the 29-year-old owner of ML.Cloud; and 34-year-old Kirill Andreevich Zatolokin were charged with conspiracy to commit and aid computer fraud, conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.

The State Department also offered a reward up to $10 million for information on government-linked associates of the alleged cybercriminals and malicious use of Media Land or ML.Cloud. The Treasury Department and officials from the United Kingdom and Australia imposed sanctions on Volosovik, Zatolokin, Pankova, Media Land and ML.Cloud in November 2025. 

The three accused Russians, Media Land and ML.Cloud were all based in St. Petersburg as of 2024.

“With today’s actions, the FBI and our partners are striking at the core services that cybercriminals rely on to attack U.S. critical infrastructure,” Brett Leatherman, assistant director of the FBI Cyber Division, said in a statement. “This is another step in our broader campaign to shrink the space in which these actors can operate, forcing them to work harder, take greater risks, and lose the anonymity they depend on.”

Media Land and ML.Cloud allegedly provided cybercriminals with infrastructure and technical support to infect systems with malware and ransomware for extortion. Officials said the organizations also supported criminal marketplaces, fraudulent domain registrations and platforms that cybercriminals used to commit phishing and brute-force attacks.

Officials said they identified a consistent and long-running pattern of criminal activities facilitated by Volosovik, Pankova, Zatolokin, Media Land and ML.Cloud.

Investigators located victims across 21 states, including nine cities in the Northern District of Ohio, where the indictment was filed. Additional victims were located in Australia, the European Union, the United Arab Emirates, Canada and the United Kingdom.

Bulletproof hosting providers are increasingly used by cybercriminals to obfuscate their activities, deliver malware, phishing, and host content and services that support ransomware, data extortion and denial-of-service attacks.

“From their overseas safe haven, these defendants ran the criminal infrastructure that powered attacks on critical institutions across our nation,” A. Tysen Duva, assistant attorney general of the Justice Department’s Criminal Division, said in a statement. “Their actions put the American public at risk. We will continue to dismantle these networks and protect our critical infrastructure from cybercriminals at home and abroad.”

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SonicWall customers are attempting to dodge another security challenge as attackers are exploiting a pair of zero-day vulnerabilities that have been confirmed by the vendor. 

The company publicly disclosed the vulnerabilities — CVE-2026-15409 and CVE-2026-15410 — in a security advisory Tuesday. SonicWall credited an employee with discovering the defects, but it hasn’t said when the discovery occurred or the earliest known instance of exploitation. 

Rapid7 researchers told CyberScoop both vulnerabilities were first exploited June 22. “From the cases that our team has observed, the goal is likely ransomware, though we have prevented the actors from achieving exfiltration and encryption,” said Seth Lazarus, senior manager of detection and response services at Rapid7.

Overlapping tactics, techniques and procedures from the attacks observed by Rapid7 indicate the same threat group or attacker discovered and exploited the zero-days, Lazarus added.

SonicWall did not answer questions about the impacts of these attacks thus far, and the company hasn’t attributed the attacks to a known group or described the attacker’s origins and motivations.

The vendor did, however, confirm to CyberScoop that both vulnerabilities have been chained together for exploitation. The vulnerabilities affecting SonicWall SMA1000 appliances, including a max-severity defect that allows attackers to make authenticated requests and a 7.2-rated vulnerability that allows authenticated command injection.

“When these two are chained, an attacker can go from zero access to a complete system compromise for the affected appliance,” said Landon Rice, senior exploit developer at VulnCheck.

Ben Harris, founder and CEO at watchTowr, said two characteristics of the vulnerabilities fuel a sense of dread. “Both were exploited as zero-days before fixes were available, and together they offer a plausible path to remote-code execution from the internet,” he said.

The Cybersecurity and Infrastructure Security Agency added both zero-days to its known exploited vulnerabilities catalog Tuesday. 

SonicWall encouraged customers to patch the vulnerabilities by upgrading to the latest software version, which it released upon disclosure, and shared some indicators of compromise to help customers hunt for potential malicious activity on their systems.

“Speed of response was a priority for us,” said Bret Fitzgerald, senior director of global communications at SonicWall. “Within days of becoming aware of the issue, our team had developed a script that we can run on behalf of affected customers to assist with resolution, and mitigation efforts are already underway.”

SonicWall and third-party researchers haven’t said how many SonicWall customers are impacted by the exploited vulnerabilities, but the vendor did say it already investigated multiple cases of active exploitation. 

Fitzgerald said the company monitors about one million sensors globally and “SMA1000 appliances represent a very small subset of that footprint, less than 5,000 units.”

SonicWall said support staff are also helping customers work through instances of suspicious activity, warning that patching alone is not sufficient. 

The vendor and its customers have been hit by a barrage of actively exploited zero-days and previously disclosed defects in SonicWall devices for years. In 2025, an undisclosed state-sponsored threat actor intruded the company’s cloud environment and stole firewall configurations of every SonicWall customer. 

Seventeen defects affecting the vendor’s products have been added to CISA’s known exploited vulnerabilities catalog since late 2021. Ten of those defects are known to be used in ransomware campaigns, according to CISA, including a wave of about 40 Akira ransomware attacks between mid-July and early August.

“As always,” Harris said, “when something is confirmed as already exploited in the wild, patching is the bare minimum, and breach should be assumed.”

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Microsoft’s monthly Patch Tuesday security program reached an unrivaled pinnacle this month, as the vendor addressed 622 vulnerabilities across its suite of business products and systems. 

“The bug apocalypse has finally descended upon us,” Dustin Childs, head of threat awareness at Trend Micro’s Zero Day Initiative, wrote in a blog post Tuesday.

“The mother of all releases. To call this record-breaking is an understatement,” he added. “The CVE count year-to-date exceeds all other years’ totals.”

The startling increase in vulnerabilities reflects a compounding effect taking root across software as artificial intelligence plays a growing role in discovering and developing patches for defects lurking in error-riddled applications. 

Microsoft’s June Patch Tuesday update broke the previous all-time record with 206 vulnerabilities.

The company last week warned forewarned customers and defenders that a flood of defects would be uncovered as it applies its multi-model agentic scanning harness (MDASH) to discover and address vulnerabilities at greater speed and scale.

The monthly exponential rise in Microsoft vulnerabilities already puts the vendor on pace to break a full-year record, ending 2026 with the largest annual collection of defects, beating the previous record of 1,245 CVEs in 2020, Satnam Narang, senior staff research engineer at Tenable, said in an email. 

“It’s probable that we will not only exceed 2,000 CVEs in a calendar year, but potentially over 3,000 CVEs this year or more,” he added.

“The volume is striking, but it reflects how good these tools have become at finding bugs, not how many of those bugs actually pose a risk to organizations,” Narang said.

Microsoft disclosed two actively exploited zero-day vulnerabilities — CVE-2026-56155 and CVE-2026-56164, privilege escalation defects in Active Directory Federation Services and Microsoft SharePoint Server, respectively. 

The monthly batch of patches included 416 defects in Windows, 82 in Office and 46 in Microsoft Edge. More than 1 in 10 vulnerabilities the vendor disclosed — 63 total — were rated as critical.

“The products covered this month are also astonishing,” Childs said. “Just about everything you’ve ever heard of is getting patched.”

The full list of vulnerabilities addressed this month is available in Microsoft’s Security Response Center.

SAP also addressed a fresh assortment of vulnerabilities Tuesday, including critical defects CVE-2026-44747 in SAP NetWeaver Application Server and CVE-2026-27690 in SAP Approuter.

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Russian state-sponsored hackers are breaking into critical infrastructure around the world by exploiting poorly configured and vulnerable networking devices, authorities from the United States and 12 additional countries said in a joint cybersecurity advisory Monday.

Officials once again urged defenders to take more preventative measures to thwart attacks from the Russian Federal Security Service Center 16, which has been actively targeting critical infrastructure for more than a decade. The hackers are also tracked as Berserk Bear, Energetic Bear, Crouching Yeti, Dragonfly, Ghost Blizzard and Static Tundra.

“This is an ongoing issue that has impacted various U.S. and foreign networks across multiple sectors, including the defense industrial base, communications, energy, financial services, government facilities and health care sectors,” the National Security Agency said in a statement.

The state-sponsored attackers scan the internet for vulnerable routers using default or weak passwords, and have also exploited vulnerabilities in Cisco devices, Cisco’s Smart Install feature and web portals to take over network devices. 

Two of the Cisco vulnerabilities exploited by the Russian FSB Center 16 hackers are quite old, including CVE-2008-4128 and CVE-2018-0171. 

Officials shared technical details of the threat group’s activities and advised network defenders to disable Cisco Smart Install on all devices, use stronger modes of authentication and passwords, monitor for unusual credentials and logins using local accounts. 

The joint advisory comes nearly a year after the FBI issued a similar alert about the same group targeting end-of-life networking devices running Cisco Smart Install. 

On Monday, the European Union blamed Russia’s FSB Center 16 for a December 2025 attack on Poland’s energy grid. The United Kingdom, also on Monday, sanctioned 24 individuals and entities allegedly involved in various attacks attributed to Russian intelligence services.

“From directing criminals to targeting businesses, and striking Poland’s energy grid in the depths of winter, the Russian state is sinking to new lows in its attempts to undermine European security,” Yvette Cooper, foreign security of the United Kingdom, said in a statement. 

Other countries behind the joint cybersecurity advisory include: Canada, Australia, New Zealand, Czech Republic, Denmark, Estonia, Finland, France, Italy, Poland and Sweden.

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An Armenian national who was extradited from Ukraine to the United States last year pleaded guilty to participating in a series of attacks in 2019 and 2020 involving Ryuk ransomware, the Justice Department said Thursday.

Karen Serobovich Vardanyan pleaded guilty to computer fraud and conspiracy to commit fraud and extortion. He agreed to pay nearly $1.2 million million in restitution and faces up to 15 years in jail.

The 34-year-old admitted to participating in cybercrime from November 2019 to April 2020 when he and his co-conspirators deployed Ryuk ransomware against three U.S.-based organizations while living in Ukraine and Russia.

Vardanyan’s victims include a Michigan-based company that paid a ransom of nearly $1.2 million in January 2020, a Watsonville, Oregon-based technology company that was attacked in December 2019 and a Texas-based school breached in February 2020.

Prosecutors previously accused Vardanyan and his co-conspirators — Ukrainian nationals Oleg Nikolayevich Lyulyava and Andrii Leonydovich Prykhodchenko, and Armenian national Levon Georgiyovych Avetisyan — of illegally accessing computer networks to deploy Ryuk ransomware on hundreds of compromised servers and workstations between March 2019 and September 2020.

Ryuk ransomware was prevalent in 2019 and 2020, infecting thousands of victims globally across the private sector, state and local municipalities, local school districts and critical infrastructure, including a wave of attacks on U.S. hospitals.

Victims of Ryuk ransomware attacks include Hollywood Presbyterian Medical Center, Universal Health Services, Electronic Warfare Associates, a North Carolina water utility and multiple U.S. newspapers.

Ryuk ransomware operators extorted victim companies by demanding ransom payments in Bitcoin in exchange for decryption keys. Justice Department officials said Vardanyan and his co-conspirators received about 1,160 bitcoins — valued at more than $15 million at the time — in ransom payments from victim companies.

Vardanyan, as part of his guilty plea, also acknowledged that his conviction will have immigration consequences resulting in removal from the United States after serving his sentence. 

The U.S. District Court for the District of Oregon has yet to schedule his sentencing.

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A former ransomware negotiator for DigitalMint was sentenced to 70 months in jail for deceiving his employer’s clients and conspiring with ransomware affiliates to extort a combined $75.3 million from five U.S. companies he was entrusted to aid during their moments of extreme crisis, the Justice Department said Thursday. 

Angelo John Martino III shared confidential information he gained from his work as a ransomware negotiator, including victim organizations’ negotiating positions and insurance policy limits, to extract the maximum payment for himself and other BlackCat affiliates he colluded with in backchannels.

Five of Martino’s victims hired DigitalMint, which assigned the 41-year-old to conduct ransomware negotiations on their clients’ behalf — a rare position he exploited to play both sides, effectively conducting ransomware negotiations with himself and his co-conspirators.

The five victims, all of which paid a ransom between April 2023 and September 2023, include a nonprofit that paid a nearly $26.8 million ransom, a financial services company that paid nearly $25.7 million, and a hospitality company that paid almost $16.5 million. 

DigitalMint hired the South Florida-based man in 2022 after he was already engaging in criminal activity, according to court records. The husband and father of two young children had a long history as a cybersecurity professional, dating back to at least 2015, with previous stints at Booz Allen Hamilton, Tracepoint and TRM Labs.

Martino surrendered to U.S. Marshals in March, was released on a $500,000 bond, and pleaded guilty in April to conspiracy to obstruct, delay or affect commerce or the movement of any article or commodity in commerce by extortion. He faced up to 20 years in prison.

Martino also admitted to conspiring with Kevin Tyler Martin, another former ransomware negotiator at DigitalMint, and Ryan Clifford Goldberg, a former manager of incident response at Sygnia, to deploy BlackCat ransomware, also known as ALPHV, against five additional U.S. companies between April and November 2023. 

Goldberg, Martin and Martino split proceeds from a nearly $1.3 million ransom payment they received from a medical company in May 2023, but did not successfully extort a financial payment from the other four victims.

Goldberg and Martin pleaded guilty in December to participating in a series of ransomware attacks and were each sentenced in April to four years in prison. 

DigitalMint insists it had no knowledge of Martino’s criminal acts. “The actions of Martino and his co-conspirators were deliberately concealed from DigitalMint and were in clear violation of the company’s values, ethical standards and the law,” a company spokesperson told CyberScoop in a statement.

The company also reiterated that it immediately terminated Martino and suspended his access to systems when the Justice Department notified the company it was investigating him in April 2025.

“DigitalMint maintained controls consistent with industry standards, including background checks and compliance procedures, but Martino intentionally hid his conduct from the company, including through separate, unauthorized communication channels that the government’s filings describe as accessible only to Martino and the BlackCat negotiators and affiliates,” the spokesperson added.

DigitalMint has yet to directly answer questions about whether it refunded its clients who were victimized by Martino. 

“We are not able to discuss specific client relationships or fee arrangements due to confidentiality obligations,” the spokesperson said. “We remain committed to our clients and will continue to maintain strict confidentiality on all commercial matters.”

The case against Martino showcases an extreme, albeit rare, example of the dark underbelly of ransomware negotiation as a practice. The pitfalls of ransomware negotiation are excessive and these backchannel negotiations, which remain largely unscrutinized, can go awry for various reasons.

Officials describe Martino as a ‘double agent’ driven by greed

Prosecutors said Martino obtained an ALPHV affiliate account that he shared with his co-conspirators and received a portion of the ransomware payments for his involvement in the conspiracy.

Authorities have seized $10 million in assets, including a bayfront home with an estimated value of $1.68 million, a second single-family home with an estimated value of $396,000, and cryptocurrency wallets controlled by Martino. Law enforcement also seized multiple vehicles, a food truck and a 29-foot luxury fishing boat that Martino obtained using proceeds from his crimes.

“Angelo Martino’s victims shared heartbreaking accounts of how their businesses were nearly destroyed, while the people they hired to help them instead betrayed them to ransomware gangs,” A. Tysen Duva, assistant attorney general at the Justice Department’s Criminal Division, said in a statement. “Today’s sentence accounts for the harm Martino caused and demonstrates that the Department of Justice can and will identify and prosecute cybercriminals to the fullest extent of the law.”

Court records include a series of chats Martino held with co-conspirators and victims that exemplify the lengths he went to betray DigitalMint’s clients and empower his accomplices with crucial tips for a successful negotiation strategy.

During an incident response with one of his victims, Martino told a BlackCat affiliate the company’s insurance carrier “was only approving small accounts,” according to his plea agreement. “Keep denying our offers and I will let you know once I find out the max the[y] want to pay,” he added.

“We don’t know how you came up with your demand but we are losing money operationally and all of our loans are going to turnover on us this year at double the interest rates,” Martino said in a negotiation chat visible to DigitalMint and the victim organization in the hospitality industry. “We are able to give you $1 million now, which is a very serious offer.”

Following Martino’s instructions, the BlackCat accomplice responded: “Well, you can keep that for the penalties and lawsuits which are coming your way in case we expose you. Time is ticking — we know how much you can pay. Contact your insurance. We know about them also. Stop wasting time.”

That victim company ultimately paid a ransom worth nearly $16.5 million at the time to receive a decryptor and the BlackCat affiliate’s commitment to not publish stolen data. Two other victims Martino represented via DigitalMint at the time paid $6.1 million and $213,000 ransoms for similar commitments.

“Angelo Martino sold out the very victims he was hired to represent, handing their confidential negotiating positions to BlackCat actors to drive up ransoms and enrich himself,” Brett Leatherman, assistant director of the FBI’s Cyber Division, said in a statement.

In a sentencing memo, federal prosecutors described Martino as a “double agent working to maximize the harm to his clients and the financial gain to cybercriminals who paid him a part of the ransom.”

Prosecutors added: “This was not a crime of opportunity or momentary weakness; it was a sustained abuse of a fiduciary-like relationship driven by a single purpose: greed.”

ALPHV/BlackCat, which first appeared in late 2021, was a notorious ransomware variant linked to a series of attacks on critical infrastructure providers. The Justice Department disrupted BlackCat in December 2023, seized sites operated by some of its affiliates, and said the FBI developed a decryption tool that helped hundreds of victims restore their systems and save about $99 million in ransom payments at the time. 

Martino is scheduled to return to court Sept. 17 to determine the amount of restitution ordered against him for his crimes.

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