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Showing posts with label Plea Guilty. Show all posts

Ex-Cybersecurity Pros Plead Guilty in $9.5M Ransomware Spree

 

Former incident responders Ryan Clifford Goldberg and Kevin Tyler Martin have pleaded guilty to participating in a series of ransomware attacks while working at cybersecurity firms tasked with helping organizations recover from such incidents. The case highlights a rare instance of trusted professionals abusing their positions to commit cybercrime, causing significant damage to multiple organizations in 2023.

Goldberg, formerly a manager of incident response at Sygnia, and Martin, a ransomware negotiator at DigitalMint, collaborated with an unnamed co-conspirator to carry out ransomware attacks using the ALPHV (BlackCat) ransomware variant. According to federal court records, the total losses caused by their actions exceeded $9.5 million. The attacks targeted a medical company in Florida, a pharmaceutical firm in Maryland, a California doctor’s office, an engineering company in California, and a drone manufacturer in Virginia. 

The indictment revealed that the trio received nearly $1.3 million in ransom payments from the Florida medical company in May 2023, but were unable to extort payments from the other victims. The ALPHV/BlackCat ransomware, first identified in late 2021, has been linked to numerous attacks on critical infrastructure providers, including the high-profile breach of UnitedHealth Group’s subsidiary Change Healthcare in 2024.

Goldberg and Martin each pleaded guilty to one count of conspiracy to interfere with interstate commerce by extortion, which reduces their maximum penalty from 50 years to 20 years in federal prison. As part of their plea agreements, both defendants are ordered to forfeit $342,000, representing the value of proceeds traced to their crimes. The court may also impose fines of up to $250,000 and additional restitution. 

A spokesperson for DigitalMint stated that the company cooperated fully with the Justice Department and supports the outcome as a step toward accountability. “His behavior is a clear violation of our values and ethical standards,” the spokesperson said, emphasizing that Martin’s actions were undertaken without the company’s knowledge or involvement. Sygnia did not immediately respond to requests for comment. 

Prosecutors noted that Goldberg and Martin abused their positions of trust and used their specialized skills to facilitate and conceal their crimes. Officials have indicated that they will recommend reduced sentences if both defendants make full, accurate, and complete disclosures of their offenses and refrain from committing further crimes.