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  • A Little Sunshine


    29
    Nov 11

    Attempted Malvertising on KrebsOnSecurity.com

    Members of an exclusive underground hacker forum recently sought to plant malware on KrebsOnSecurity.com, by paying to run tainted advertisements through the site’s advertising network — Federated Media. The attack was unsuccessful thanks to a variety of safeguards, but it highlights the challenges that many organizations face in combating the growing scourge of “malvertising.”

    Last week, I listed the various ways this blog and its author has been “honored” over the past few years by the cybercrime community, but I neglected to mention one recent incident: On May 27, 2011, several hackers who belong to a closely guarded English-language criminal forum called Darkode.com sought to fraudulently place a rogue ad on KrebsOnSecurity.com. The ad was made to appear as though it was advertising BitDefender antivirus software. Instead, it was designed to load a malicious domain: sophakevans. co. cc, a site that has been associated with pushing fake antivirus or “scareware.”

    The miscreants agreed to pay at least $272 for up to 10,000 impressions of the ad to be run on my site. Fortunately, I have the opportunity to review ads that come through Federated’s system. What’s more, Federated blocked the ad before it was even tagged for approval.

    Darkode members plot to purchase a rogue ad on KrebsOnSecurity.com. They failed.

    I learned about this little stunt roughly at the same time it was being planned; Much to the constant annoyance of the site administrators, I secretly had gained access to Darkode and was able to take this screen shot of the discussion. The incident came just a few weeks after I Tweeted evidence of my presence on Darkode by posting screenshots of the forum. The main administrator of Darkode, a hacker who uses the nickname “Mafi,” didn’t appreciate that, and promised he and his friends had something fun planned for me. I guess this was it. Interestingly, Mafi also is admin at malwareview.com and is the developer of the Crimepack exploit kit.

    Continue reading →


    23
    Nov 11

    Apple Took 3+ Years to Fix FinFisher Trojan Hole

    The Wall Street Journal this week ran an excellent series on government surveillance tools in the digital age. One story looked at FinFisher, a remote spying Trojan that was marketed to the governments of Egypt, Germany and other nations to permit surreptitious PC and mobile phone surveillance by law enforcement officials. The piece noted that FinFisher’s creators advertised the ability to deploy the Trojan disguised as an update for Apple’s iTunes media player, and that Apple last month fixed the vulnerability that the Trojan leveraged.

    Image: spiegel.de

    But the WSJ series and other media coverage of the story have overlooked one small but crucial detail: A prominent security researcher warned Apple about this dangerous vulnerability in mid-2008, yet the company waited more than 1,200 days to fix the flaw.

    The disclosure raises questions about whether and when Apple knew about the Trojan offering, and its timing in choosing to sew up the security hole in this ubiquitous software title: According to Apple, as of June 2011, there were approximately a quarter billion installations of iTunes worldwide.

    Apple did not respond to requests for comment. An email sent Wednesday morning to its press team produced an auto-response stating that employees were already on leave for the Thanksgiving holiday in the United States.

    I first wrote about this vulnerability for The Washington Post in July 2008, after interviewing Argentinian security researcher Francisco Amato about “Evilgrade,” a devious new penetration testing tool he had developed. The toolkit was designed to let anyone send out bogus automatic update alerts to users of software titles that don’t sign their updates. I described the threat from this toolkit in greater detail:

    Why is this a big deal? Imagine that you’re at an airport lounge, waiting to board your flight, and you pop open your laptop to see if you can hop on an open wireless network. Bear in mind that there are plenty of tools available that let miscreants create fake wireless access points for the purposes of routing your connection through their computer. You connect to that fake network, thinking you can check your favorite team’s sports scores. A few seconds later, some application on your system says there’s a software update available. You approve the update.

    You’re hosed.

    Or maybe you don’t approve the update. But that may not matter, because in some cases, auto-update features embedded in certain software titles will go ahead and download the update at that point, and keep nagging you until you agree to install it at a later date.

    Evilgrade leveraged a flaw in the updater mechanism for iTunes that could be exploited on Windows systems. Amato described the vulnerability:

    “The iTunes program checks that the binary is signed by Apple but we can inject content into the description as it opens a browser, with a malicious binary so that the user thinks its from Apple,” Amato said of his attack tool.

    Emails shared with KrebsOnSecurity show that Amato contacted Apple’s security team on July 11, 2008, to warn them that the iTunes update functionality could be abused to push out malicious software. According to Amato, Apple acknowledged receipt of the report shortly thereafter, but it did not contact him about his findings until Oct. 28, 2011, when it sent an email to confirm his name and title for the purposes of crediting him with reporting the flaw in its iTunes 10.5.1 patch release details. Interestingly, Apple chose to continue to ignore the vulnerability even after Amato shipped a significant feature upgrade to Evilgrade in Oct. 2010.

    The length of time Apple took to patch this significant security flaw is notable. In May 2006, I undertook a longitudinal study of how long it took Apple to ship security updates for its products. In that analysis, I looked at two years’ worth of patches issued to fix serious security bugs in Apple’s Mac OS X operating system, as well as other Apple software applications like iTunes. I found that on average, 91 days elapsed between the date that a security researcher alerted Apple to an unpatched flaw and the date Apple shipped a patch to fix the problem. In that study, I examined patch times for four dozen flaws, and the lengthiest patch time in that period was 245 days.

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    22
    Nov 11

    DHS Blasts Reports of Illinois Water Station Hack

    The U.S. Department of Homeland Security today took aim at widespread media reports about a hacking incident that led to an equipment failure at a water system in Illinois, noting there was scant evidence to support any of the key details in those stories — including involvement by Russian hackers or that the outage at the facility was the result of a cyber incident.

    Last week, portions of a report titled “Public Water District Cyber Intrusion” assembled by an Illinois terrorism early warning center were published online. Media outlets quickly picked up on the described incident, calling it the “first successful target of a cyber attack on a computer of a public utility.” But in an email dispatch sent to state, local and industry officials late today, DHS’s Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) said that after detailed analysis, DHS and the FBI “have found no evidence of a cyber intrusion into the SCADA system of the Curran-Gardner Public Water District in Springfield, Illinois.” The ICS-CERT continued:

    “There is no evidence to support claims made in the initial Fusion Center report – which was based on raw, unconfirmed data and subsequently leaked to the media – that any credentials were stolen, or that the vendor was involved in any malicious activity that led to a pump failure at the water plant,” the ICS-CERT alert states. “In addition, DHS and FBI have concluded that there was no malicious or unauthorized traffic from Russia or any foreign entities, as previously reported.  Analysis of the incident is ongoing and additional relevant information will be released as it becomes available.”

    The statement is the most strongly worded yet from DHS refuting the alleged cyber incident in Illinois. The story broke on Nov. 17, when Joe Weiss, managing partner of Applied Control Solutions, a security consultant for the control systems industry, published a blog post about a disclosure he reported reading from a state terrorism intelligence center about a cyber intrusion into a local water plant that resulted in the burnout of a water pump. The break-in reportedly allowed intruders to manipulate the supervisory control and data acquisition system, or “SCADA” networks that let plant operators manage portions of the facility remotely over the Internet. Within hours of that post, media outlets covering the story had zeroed in on the Curran-Gardner Water District as the source of the report.

    Weiss has repeatedly declined to share or publish the report, but he cited large portions of it in my story from last week. The language and details reported in it stand in stark contrast to the DHS’s version of events. According to Weiss, the report, marked sensitive but unclassified, stated:

    “Sometime during the day of Nov. 8, 2011, a water district employee noticed problems with a SCADA system. An information technology service and repair company checked the computer logs of the SCADA system and determined the system had been remotely hacked into from an Internet provider address located in Russia. The SCADA system that was used by the water district was produced by a software company based in the US. It is believed the hackers had acquired unauthorized access to the software company’s database and retrieved the usernames and passwords of various SCADA systems, including the water district systems.”

    “Over a period of 2-3 months, minor glitches have been observed in remote access to the water district’s SCADA system. Recently, the SCADA system would power on and off, resulting in the burnout of a water pump.”

    “This network intrusion is the same method of attack recently used against the MIT Server,” the water district alert stated. “The water district’s attack and the MIT attack both had references to PHPMyAdmin in the log files of the computer systems. It is unknown at this time the number of SCADA usernames and passwords acquired from the software company’s database, and if any additional systems have been attacked as a result of this theft.”

    Weiss blogged about the ICS-CERT statement, and said he can’t figure out how the two accounts could be so different. He notes that the day after his blog post, Don Craven, chairman of the Curran-Gardner Water District, was quoted on a local ABC News affiliate television interview saying that there was “some indication that there was a breach of some sort into a software program, a SCADA system, that allows remote access to the wells and the pumps and those sorts of things” (see video below).

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    21
    Nov 11

    DDoS Attack on KrebsOnSecurity.com

    Last week, not long after I published the latest installment in my Pharma Wars series, KrebsOnSecurity.com was the target of a sustained distributed denial-of-service (DDoS) attack that caused the site to be unavailable for some readers between Nov. 17 and 18. What follows are some details about that attack, and how it compares to previous intimidation attempts.

    The DDoS was caused by incessant, garbage requests from more than 20,000+ PCs around the globe infected with malware  that allows criminals to control them remotely for nefarious purposes. If you’ve noticed that a few of the features on this site haven’t worked as usual these past few days, now you know why. Thanks for your patience.

    I shared the log files of the attack with Joe Stewart, director of malware research at Dell SecureWorks. Stewart discovered that the botnet responsible for hitting my site appears to have been created with Russkill, a commercial crimeware kit that is sold for a few hundred bucks on the hacker underground. Russkill, sometimes called Dirt Jumper, does its dirty work by forcing infected systems to rapidly request the targeted site’s homepage.

    Stewart said he suspects — but can’t prove – that the control center for this botnet is noteye.biz, based on traffic analysis of Internet addresses in the logs I shared with him.

    “I did not already have [noteye.biz] under monitoring so it is impossible to say for sure what targets were hit in the past,” Stewart wrote in an email. He noted that the same attacker also apparently runs a Dirt Jumper botnet at xzrw1q.com, which also is currently attacking Ukrainian news site genshtab.censor.net.ua, and kidala.info (“kidala” is Russian slang for “criminal,” and kidala.info is a well-known Russian crime forum).

    “According to my logs this botnet did attack your site back in April, so this is some additional circumstantial evidence that suggests the noteye.biz [control network] may have been involved in the recent attack on your site,” Stewart wrote.

    As Stewart notes, this is not the first time my site has been pilloried, although it was arguably the most disruptive. In October 2010, a botnet typically used to spread spam for rogue Internet pharmacies attacked krebsonsecurity.com, using a hacked Linux server at a research lab at Microsoft, of all places.

    I’ve spoken at more than a dozen events this year, and the same question nearly always comes up: Do you ever get threatened or attacked? For the most part, the majority of the threats or intimidation attempts have been light-hearted.

    Yes, occasionally crooks in the underground will get a bit carried away – as in these related threads from an exclusive crime forum, where I am declared the “enemy of carding;” or in the love I received from the guys at Crutop.nu, a major Russian adult Webmaster forum (the site now lives at Crutop.eu).

    Continue reading →


    18
    Nov 11

    Cyber Intrusion Blamed for Hardware Failure at Water Utility

    A recent cyber attack on a city water utility in Illinois may have destroyed a pump and appears to be part of a larger intrusion at a U.S. software provider, new information suggests. The incident is the latest to raise alarms about the security protecting  so-called supervisory control and data acquisition system, or “SCADA” networks — increasingly Internet-connected systems designed to monitor and control complex industrial networks.

    CNN is reporting that federal officials are investigating the attack, but quoted a Department of Homeland Security official downplaying the incident. Wired.com says the focus of the attack may be the Curran-Gardner Public Water District near Springfield, Ill. The Register quotes DHS’s Peter Boogaard saying the agency and the FBI are gathering facts surrounding the report of a water pump failure, but that “at this time there is no credible corroborated data that indicates a risk to critical infrastructure entities or a threat to public safety.”

    The incident was first reported in a state cyber fusion notice dated Nov. 10, and soon was summarized on the blog by Joe Weiss, managing partner of Applied Control Solutions, a SCADA systems security firm. Weiss criticized the lack of response and alerting by the US-CERT, Department of Homeland Security, and the information sharing and analysis center (ISAC) run by the water industry.

    Weiss read KrebsOnSecurity sections of the report, which traced the origin of the attack to Russian Internet addresses.

    “Sometime during the day of Nov. 8, 2011, a water district employee noticed problems with a SCADA system. An information technology service and repair company checked the computer logs of the SCADA system and determined the system had been remotely hacked into from an Internet provider address located in Russia.”

    The alert also indicates that this attack may be linked to a SCADA provider that also serves other industries, in addition to the water sector. From the alert:

    “The SCADA system that was used by the water district was produced by a software company based in the US. It is believed the hackers had acquired unauthorized access to the software company’s database and retrieved the usernames and passwords of various SCADA systems, including the water district systems.”

    The intrusions apparently took place over several months, during which time the attackers remotely logged into the water district’s SCADA networks and toggled systems off and on, eventually causing the failure of a water pump at the facility.

    “Over a period of 2-3 months, minor glitches have been observed in remote access to the water district’s SCADA system. Recently, the SCADA system would power on and off, resulting in the burnout of a water pump.”

    The notice also stated that the method of attack appears to be similar to the recent compromise of servers at the Massachusetts Institute of Technology (MIT), which involved security weaknesses around phpMyAdmin, a popular Web-based database administration tool.

    “This network intrusion is the same method of attack recently used against the MIT Server,” the water district alert stated. “The water district’s attack and the MIT attack both had references to PHPMyAdmin in the log files of the computer systems. It is unknown at this time the number of SCADA usernames and passwords acquired from the software company’s database, and if any additional systems have been attacked as a result of this theft.”

    Michael Assante, president and CEO of the National Board of Information Security Examiners and a former chief security officer for the North American Electric Reliability Corporation (NERC), said the attack highlights the potential pitfalls of utilities increasingly turning to off-the-shelf commercial solutions and remote access to trim costs in an era of tight state and local budgets.

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    10
    Nov 11

    Rove Digital Was Core ChronoPay Shareholder

    Rove Digital, the company run by six men who were arrested in Estonia this week for allegedly infecting four million PCs worldwide with malware, was an early investor in ChronoPay, a major Russian payment processing firm whose principal founder Pavel Vrublevsky also is now in prison and awaiting trial on cyber crime charges, KrebsOnSecurity has learned.

    Estonian authorities on Tuesday arrested Rove Digital founder Vladimir Tsastsin, 31, along with five other Estonian nationals indicted on charges of running a sophisticated click fraud scheme. Yesterday’s blog post details Tsastsin’s criminal history, and his stewardship over Rove and a sister firm, EstDomains.. Today’s post will reveal how Tsastsin and his company were closely allied with and early investors in ChronoPay, and how that relationship unraveled over the years.

    In my Pharma War series, I’ve published incorporation documents showing that Igor Gusev, a man currently wanted in Russia on criminal charges of running an illegal business in the notorious pharmacy spam affiliate programs GlavMed and SpamIt, was a co-founder of ChronoPay back in 2003. That series also details how Gusev sold his shares in ChronoPay, and that Vrublevsky later started a competing rogue pharmacy/spam operation called Rx-Promotion.

    A spreadsheet showing front companies tied to ChronoPay.

    It turns out that ChronoPay also had two other major and early investors: Rove Digital and a mysterious entity called Crossfront Limited. This information was included in the massive trove of internal ChronoPay emails and documents that was briefly published online last year and shared with select journalists and law enforcement agencies. Among those documents is a spreadsheet (XLS) listing all of the various shadowy companies allegedly owned and managed by ChronoPay founder Pavel Vrublevsky and associates. It lists ChronoPay B.V., the legal entity in The Netherlands that formed the initial basis of the company, as jointly owned by Gusev’s firm DPNet B.V., Red & Partners (Vrublevsky’s adult Webmaster provider) and Rove Digital OU.

    When I met with Vrublevsky at his offices in Moscow in February of this year, he confirmed that Tsastsin was an old friend and that Rove Digital had been a key shareholder in the company. Further evidence of the connection between ChronoPay and Rove Digital is provided in a series of internal ChronoPay emails from May 2010.

    At that time, ChronoPay was under investigation by Dutch banking regulators who suspected that the company’s intricate network of front companies and financial channels were acting in violation of the country’s anti-money laundering laws. In a tersely-worded email exchange, the Dutch bank  demanded a slew of additional accounting and administrative records, including “all documents that show the structure of ChronoPay BV, such as statutes, incorporation documents, names and addresses of director(s) and shareholders.”

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    9
    Nov 11

    ‘Biggest Cybercriminal Takedown in History’

    The proprietors of shadowy online businesses that have become synonymous with cybercrime in recent years were arrested in their native Estonia on Tuesday and charged with running a sophisticated click fraud scheme that infected with malware more than four million computers in over 100 countries — including an estimated 500,000 PCs in the United States. The law enforcement action, dubbed “Operation Ghost Click,” was the result  of a multi-year investigation, and is being called the “biggest cybercriminal takedown in history.”

    Vladimir Tsastsin, in undated photo.

    Estonian authorities arrested six men, including Vladimir Tsastsin, 31, the owner of several Internet companies that have been closely associated with the malware community for many years. Tsastsin previously headed EstDomains Inc. a domain name registrar that handled the registrations for tens of thousands of domains associated with the far-flung Russian Business Network.

    Reporting for The Washington Post in September 2008, I detailed how Tsastsin’s prior convictions in Estonia for credit card fraud, money laundering and forgery violated the registrar agreement set forth by the Internet Corporation for Assigned Names and Numbers (ICANN), which bars convicted felons from serving as officers of a registrar. ICANN later agreed, and revoked EstDomains’ ability to act as a domain registrar, citing Tsastsin’s criminal history.

    Also arrested were Timur Gerassimenko, 31; Dmitri Jegorov, 33; Valeri Aleksejev, 31; Konstantin Poltev, 28 (quoted in the above-linked stories as the spokesperson for EstDomains); and Anton Ivanvov, 26. All six men were arrested and taken into custody this week by the Estonian Police and Border Guard. A seventh defendant, a 31-year-old Russian national named Andrey Taame, is still at large.

    Source: FBI

    Indictments returned against the defendants in the U.S. District Court for the South District of New York detail how the defendants allegedly used a strain of malware generically known as DNS Changer to hijack victim computers for the purposes of redirecting Web browsers to ads that generated pay-per-click revenue for the defendants and their clients. U.S. authorities allege that the men made more than $14 million through click hijacking and advertisement replacement fraud.

    DNS Changer most often comes disguised as a video “codec” supposedly needed to view adult movies. It infects systems at the boot sector level, hooking into the host computer at a very low level and making it often very challenging to remove. This malware family didn’t just infect Microsoft Windows systems: Several versions of DNS changer would just as happily infect Mac systems as well. Other variants of the malware even hijacked DNS settings on wireless home routers. The FBI has posted several useful links to help users learn whether their systems are infected with DNS Changer.

    Feike Hacquebord, senior threat researcher for security vendor Trend Micro, called the arrest the “biggest cybercriminal takedown in history.” In a blog post published today, Hacquebord and Trend detail the multi-year takedown, which involved a number of front companies, but principally an entity that Tsastsin founded named Rove Digital:

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    8
    Nov 11

    How Much Is Your Identity Worth?

    How much does it cost for thieves to discover the data that unlocks identity for creditors, such as your Social Security number, birthday, or mother’s maiden name? Would it surprise you to learn that crooks are selling this data to any and all comers for pennies on the dollar?

    superget.info home page

    At least, that’s the going price at superget.info. This fraudster-friendly site has been operating since July 2010, and markets the ability to look up SSNs, birthdays and other sensitive information on millions of Americans. Registration is free, and accounts are funded via WebMoney and Liberty Reserve, virtual currencies that are popular in the cybercriminal underground.

    Superget lets users search for specific individuals by name, city, and state. Each “credit” costs USD$1, and a successful hit on a Social Security number or date of birth costs 3 credits each. The more credits you buy, the cheaper the searches are per credit: Six credits cost $4.99; 35 credits cost $20.99, and $100.99 buys you 230 credits. Customers with special needs can avail themselves of the “reseller plan,” which promises 1,500 credits for $500.99, and 3,500 credits for $1000.99.

    “Our Databases are updated EVERY DAY,” the site’s owner enthuses. “About 99% nearly 100% US people could be found, more than any sites on the internet now.”

    Customers who aren’t choosy about the identities they’re stealing can get a real bargain. Among the most trafficked commodities in the hacker underground are packages called “fullz infos,” which include the full identity information on dozens or hundreds of individuals.

    The table at the right shows the bulk lookup price-per-identity in this class. In the “Fullz Info USA Type A” package, each record includes the subject’s first name, last name, middle name, email address, email password, physical address, phone number, date of birth, Social Security number, drivers license number, bank name, bank account number, bank routing number, the victim employer’s name, and the number of years that individual has been at his or her current job. The proprietor of this shop says he has more than 330,000 records of this type, and is adding 300-400 new records each day.

    If you want the mother’s maiden name included in each of the bulk records, you’ll need to select “Fullz Info USA Type B”; the site’s owner says this package includes data from an older database, and perhaps that explains why the prices for these identities (pictured at left) are so much lower than those in the Type A category. The price in Type B starts at 16 cents per identity, and falls as low as nine cents per record for those requesting more than 20,000 fullz from this category.

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    2
    Nov 11

    Are You on the Pwnedlist?

    2011 has been called the year of the data breach, with hacker groups publishing huge troves of stolen data online almost daily. Now a new site called pwnedlist.com lets users check to see if their email address or username and associated information may have been compromised.

    Pwnedlist.com is the creation of Alen Puzic and Jasiel Spelman, two security researchers from DVLabs, a division of HP/TippingPoint. Enter a username or email address into the site’s search box, and it will check to see if the information was found in any of these recent public data dumps.

    Puzic said the project stemmed from an effort to harvest mounds of data being leaked or deposited daily to sites like Pastebin and torrent trackers.

    “I was trying to harvest as much data as I could, to see how many passwords I could possibly find, and it just happened to be that within two hours, I found about 30,000 usernames and passwords,” Puzic said. “That kind of got me thinking that I could do this every day, and if I could find over one million then maybe I could create a site that would help the everyday user find if they were compromised.”

    Pwnedlist.com currently allows users to search through nearly five million emails and usernames that have been dumped online. The site also frequently receives large caches of account data that people directly submit to its database. Puzic said it is growing at a rate of about 40,000 new compromised accounts each week.

    Puzic said information contained in these data donations often make it simple to learn which organization lost the information.

    “Usually, somewhere in the dump files there’s a readme.txt file or there’s some type of header made by hacker who caused the breach, and there’s an advertisement about who did the hack and which company was compromised,” Puzic said. “Other times it’s really obvious because all of the emails come from the same domain.”

    Puzic said Pwnedlist.com doesn’t store the username, email address and password data itself; instead, it records a cryptographic hash of the information and then discards the plaintext data. As a result, a “hit” on any searched email or username only produces a binary “yes” or “no” answer about whether any hashes matching that data were found. It won’t return the associated password, nor does it offer any clues about from where the data was leaked.

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    1
    Nov 11

    Jailed ChronoPay Co-Founder Denied Bail

    A Moscow court on Monday denied bail for Pavel Vrublevsky, a Russian businessman who was charged earlier this year with hiring hackers to launch costly online attacks against his rivals. The denial came even after Vrublevsky apparently admitted his role in the attacks, according to Russian news outlets.

    Vrublevsky in 2004

    Vrublevsky, 32, is probably best known as the co-founder of ChronoPay, a large online payment processor in Russia. He was arrested in June after Russian investigators secured the confession of a man who said he was hired by Vrublevsky to launch a debilitating cyber attack against Assist, a top ChronoPay competitor. The former ChronoPay executive reportedly wanted to sideline rival payment processing firms who were competing for a lucrative contract to process payments for Aeroflot, Russia’s largest airline. Aeroflot’s processing systems faltered for several days in the face of the attack, an outage that Aeroflot says cost the company about a million dollars a day.

    Vrublevsky’s lawyers asked the court to release him pending a trial in December — offering to pay 30 million rubles (~ USD $1 million) — but the court denied the request.

    Vrublevsky co-founded ChronoPay in 2003 along with Igor Gusev, another Russian businessman who is facing criminal charges in Russia stemming from his alleged leadership role at GlavMed and SpamIt, sister programs that until recently were the world’s largest rogue online pharmacy affiliate networks. Huge volumes of internal documents leaked from ChronoPay last year indicate Vrublevsky co-ran a competing rogue Internet pharmacy — Rx-Promotion — although Vrublevsky publicly denies this.

    Vrublevsky and Gusev have been locked in an increasingly heated and public battle to ruin the others’ business, a saga that I have chronicled in an ongoing series: Pharma Wars.

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