Employee helped in ransomware operations
Federal agents are investigating allegations that a former employee of a Chicago-based firm, DigitalMint, which specializes in cryptocurrency payments and ransomware negotiations, may have profited by collaborating with hackers in extortion cases. Founded in 2014, DigitalMint operates under the name Red Leaf Chicago and is recognized for securing cryptocurrency payments for companies that face ransomware threats.
About DigitalMint
DigitalMint has taken over 2,000 ransomware cases since 2017, offering services like direct negotiations with hackers and incident response. The clients range from small firms to Fortune 500 companies.
DigitalMint President Marc Jason told partner firms that the US Department of Justice (DoJ) is investigating the allegations. The employee (identity unknown) was sacked soon after the scam was found. According to Bloomberg, Grens said, “As soon as we were able, we began communicating the facts to affected stakeholders.”
About the investigation
DigitalMint is currently working with the DoJ, and it clarified that the company is not the target of investigation. Grens did not provide more details as the investigation is ongoing. The DoJ declined to offer any comments.
The incident has led a few firms to warn clients against dealing with DigitalMint, concerned about the dangers involved in ransomware deals. Ransomware attacks can compromise systems, leak sensitive information, and encrypt data. The ransom demands sometimes go upto millions of dollars, worldwide, the extortion attacks cost billions of dollars every year.
Is ransomware negotiation worth it?
The controversy has also raised questions about conflicts of interest in the ransomware negotiation industry. According to James Talientoo, chief executive of the cyber intelligence services company AFTRDRK, “A negotiator is not incentivized to drive the price down or to inform the victim of all the facts if the company they work for is profiting off the size of the demand paid. Plain and simple.”
Security experts cautioned that paying ransom is a dangerous effort, even when done by expert ransom negotiation firms. A payment helps in furthering the operations of ransomware gangs, and sometimes it can also lead to further attacks.
