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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Attackers couldn’t get enough of the vulnerabilities at their disposal last year, making exploits the top initial access vector across more than 22,000 breaches Verizon analyzed in its latest Data Breach Investigations Report released Tuesday.

The massive annual study uncovered a surge of exploited vulnerabilities during a one-year period ending in October 2025. Exploited defects accounted for 31% of all known initial access vectors, jumping from 20% the previous year. 

The uptick in exploited vulnerabilities is a reflection of the “sisyphean cause” of vulnerability management, researchers wrote in the report. “Put quite simply, there are often too many vulnerabilities and not enough time for patching all of them.”

Organizations are struggling to keep up with the torrent of vulnerabilities affecting technology across their systems. This slide is especially worrisome, and declining, among defects in the Cybersecurity and Infrastructure Security Agency’s known exploited vulnerabilities catalog.

Only 26% of the critical vulnerabilities in CISA’s catalog were fully remediated by more than 13,000 organizations Verizon studied in 2025, marking a drop from 38% the year prior. 

“There is also a worse result for the median time elapsed for a vulnerability to be fully patched by detection,” researchers wrote in the report. “Our new median time is 43 days, almost two weeks longer than last year’s 32 days.”

Verizon also noted that the median number of KEV vulnerabilities that organizations had to patch jumped from 11 in 2024 to 16 in 2025.

CISA’s KEV catalog contained more than 1,500 CVEs as of February, and 65% of those were exploited during the previous year, according to the report.

Verizon identified the five most common weaknesses of CISA KEV CVEs in its report as out-of-bounds read, heap-based buffer overflow, use after free, external control of file name or path and access of resource using incompatible type.

Attacker motivations remained relatively consistent last year, with financially-motivated cybercriminals accounting for 88% of all breaches. Espionage-driven attacks from state-affiliated groups made up the remainder.

“Ransomware continues to be among the most disruptive and impactful types of breaches we see. Not unlike the price of everything from fast food to adult beverages in ballparks, it continues to trend upward,” researchers wrote in the report.

Ransomware accounted for 48% of all breaches last year, up from 44% in 2024. Yet, Verizon observed some positive trends in ransomware as well.

Ransom payments continued to decline, with 69% of victims reporting they didn’t pay, and the median payment slid from $150,000 in 2024 to almost $140,000 last year.

Tracking ransomware remains a challenge for researchers and authorities. 

“There is a growing disconnect between what is being reported and the reality of what has occurred, in no small part due to threat actors reusing old breaches, reposting breaches from other criminal partners and making up breaches out of whole cloth to help increase their notoriety in the criminal world,” Verizon wrote in the report. “We’re beginning to think that these cybercriminals might not be entirely trustworthy.”

Yet, despite the lack of indisputable data on ransomware activity, researchers concluded: “Ransomware is still the yoga pants of cybersecurity — ubiquitous, stubbornly popular and appearing in unexpected places near you.”

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Two former cybersecurity professionals who moonlighted as cybercriminals, committing a series of ransomware attacks in 2023, were each sentenced to four years in prison, the Justice Department said Thursday.

Ryan Clifford Goldberg and Kevin Tyler Martin previously pleaded guilty to one of three charges brought against them in December and faced up to 20 years behind bars. 

Goldberg, who was a manager of incident response at Sygnia, and Martin, a ransomware negotiator at DigitalMint at the time, collaborated with Angelo John Martino III to attack victim computers and networks and use ALPHV, also known as BlackCat, ransomware to extort payments.

“These defendants exploited specialized cybersecurity knowledge not to protect victims, but to extort them,” Jason A. Reding Quiñones, U.S. attorney for the Southern District of Florida, said in a statement. “They used ransomware to lock down critical systems, steal sensitive data, and pressure American businesses into paying to regain access to their own information.”

Victims impacted by the attacks Goldberg and Martin participated in over a six-month period in 2023 included a medical company based in Florida, a pharmaceutical company based in Maryland, a California doctor’s office, an engineering company based in California and a drone manufacturer in Virginia. 

“They harmed important firms who were providing medical and engineering services. They played hardball with them, going so far as to cause the leak of patient data from a doctor’s office victim,” A. Tysen Duva, assistant attorney general of the Justice Department’s criminal division, said in a statement.

“These were supposed to be cybersecurity specialists who did good and helped businesses and people. Instead, they used their high-level cyber skills to feed their greed. Ransomware attackers like this should be punished and removed from society to serve their lawful sentences so they cannot harm others,” Duva added.

Goldberg and Martin received identical sentences for their crimes, despite significant differences surrounding their initial arrests. Martin was arrested without incident in October and freed on bond later that month.

Goldberg fled the country in June, 10 days after he was interviewed by the FBI. He was arrested Sept. 22 and ordered to remain in custody pending trial due to flight risk. 

Goldberg and his wife boarded a one-way flight to Paris from Atlanta on June 27 and remained in Europe until Sept. 21. When Goldberg flew directly from Amsterdam to Mexico City, he was arrested upon landing and deported to the United States.

“When Goldberg sought to flee abroad and escape prosecution, the FBI tracked him through 10 countries, demonstrating the lengths we will go to hold cyber criminals accountable and protect victims,” Brett Leatherman, assistant director of the FBI’s Cyber Division, said in a statement.

The cases against Golberg, Martin and their co-conspirator Martino showcase 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.

Goldberg, 40, and Martin, 36, extorted a $1.3 million ransom payment from the medical company with Martino in May 2023, but did not receive ransom payments from their other victims.

Martino’s ransomware scheme went much further and caused significantly more damage, helping accomplices extort a combined $75.3 million in ransom payments. 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.

He pleaded guilty earlier this month to sharing confidential information about victim organizations’ internal negotiating positions and insurance policy limits he gained from his work as a ransomware negotiator to extract the maximum ransom payment for himself and other BlackCat affiliates.

The five U.S.-based victims that hired DigitalMint and unwittingly tapped Martino to allegedly conduct ransomware negotiations with himself and his co-conspirators include a nonprofit and companies in the hospitality, financial services, retail and medical industries. All five of those victims paid a ransom.

Martino surrendered in March to the U.S. Marshals in Miami and was released on a $500,000 bond. He faces up to 20 years in federal prison and is scheduled for sentencing July 9.

Sygnia and DigitalMint are not accused of any knowledge or involvement in the crimes, and both previously said they fired their former employees once federal authorities alerted the companies to their alleged crimes. 

ALPHV/BlackCat was a notorious ransomware and extortion group linked to a series of attacks on critical infrastructure providers. The ransomware variant first appeared in late 2021, and was later used in dozens of attacks on organizations in the health care sector.

The group behind the ransomware strain also claimed responsibility for the February 2024 attack on UnitedHealth Group subsidiary Change Healthcare, which paid a $22 million ransom and became the largest health care data breach on record, compromising data on about 190 million people.

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