An Iranian national pleaded guilty Tuesday to participating in an international ransomware scheme that resulted in tens of millions of dollars in losses to U.S. cities, corporations, healthcare organizations, and other entities in California, Maryland, New Jersey, New York, North Carolina, and Oregon.
Sina Gholinejad, 37, pleaded guilty to one count of computer fraud and abuse and one count of conspiracy to commit wire fraud in federal district court in North Carolina, the Department of Justice said in a news release. He faces a maximum penalty of 30 years in prison and is scheduled to be sentenced in August.
Beginning in January 2019, Gholinejad and others gained and maintained unauthorized access to computer networks and then copied information from to virtual private servers they controlled, the DOJ said. The conspirators also deployed RobbinHood ransomware to encrypt files and extort Bitcoin from the victims in exchange for the private key required to decrypt their computer files.
Gholinejad and his co-conspirators attempted to launder the ransom payments through cryptocurrency mixing services and by moving assets between different cryptocurrencies, a practice known as chain-hopping, the DOJ said. They also hid their identities and activities through a number of technical methods, including virtual private networks and servers that they operated.
"These ransomware actors leveraged sophisticated tools and tradecraft to harm innocent victims in the United States, all while believing they could conduct their illegal activities safely from overseas," said James Barnacle Jr., acting special agent in charge of the FBI field office in Charlotte, North Carolina. "This case demonstrates the capability and resolve of the FBI and our partners to find and impose consequences on cybercriminals no matter where they attempt to hide."
According to the indictment, Gholinejad and his co-conspirators compromised the computer networks of Baltimore; Greenville, North Carolina; Gresham, Oregon; and Yonkers, New York. The attack also hit Meridian Medical Group in Hackensack, New Jersey; Berkshire Farm Center and Services for Youth, a nonprofit now known as Together for Youth, in New York; and the Glenn-Colusa Irrigation District, the largest irrigation district in California's Sacramento Valley.
Baltimore lost more than $19 million because of the damage to their computer networks and the disruption to several essential city services, the DOJ said, including online services for processing property taxes, water bills, parking citations and other revenue-generating functions, which lasted many months. The conspirators used the damage they caused the cities to threaten subsequent victims.
"The ransomware attack against the city of Baltimore forced the city to take hundreds of computers offline and prevented the city from performing basic functions for months," said Matthew Galeotti, head of the DOJ's Criminal Division.. "Gholinejad's conviction reflects the Criminal Division's commitment to bringing cybercriminals who target our cities, healthcare system, and businesses to justice no matter where they are located. There will be no impunity for these destructive attacks."
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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