Posts Tagged: Sergei Mikhailov


26
Feb 19

Former Russian Cybersecurity Chief Sentenced to 22 Years in Prison

A Russian court has handed down lengthy prison terms for two men convicted on treason charges for allegedly sharing information about Russian cybercriminals with U.S. law enforcement officials. The men — a former Russian cyber intelligence official and an executive at Russian security firm Kaspersky Lab — were reportedly prosecuted for their part in an investigation into Pavel Vrublevsky, a convicted cybercriminal who ran one of the world’s biggest spam networks and was a major focus of my 2014 book, Spam Nation.

Sergei Mikhailov, formerly deputy chief of Russia’s top anti-cybercrime unit, was sentenced today to 22 years in prison. The court also levied a 14-year sentence against Ruslan Stoyanov, a senior employee at Kaspersky Lab. Both men maintained their innocence throughout the trial.

Following their dramatic arrests in 2016, many news media outlets reported that the men were suspected of having tipped off American intelligence officials about those responsible for Russian hacking activities tied to the 2016 U.S. presidential election.

That’s because two others arrested for treason at the same time — Mikhailov subordinates Georgi Fomchenkov and Dmitry Dokuchaev — were reported by Russian media to have helped the FBI investigate Russian servers linked to the 2016 hacking of the Democratic National Committee. The case against Fomchenkov and Dokuchaev has not yet gone to trial.

What exactly was revealed during the trial of Mikhailov and Stoyanov is not clear, as the details surrounding it were classified. But according to information first reported by KrebsOnSecurity in January 2017, the most likely explanation for their prosecution stemmed from a long-running grudge held by Pavel Vrublevsky, a Russian businessman who ran a payment firm called ChronoPay and for years paid most of the world’s top spammers and virus writers to pump malware and hundreds of billions of junk emails into U.S. inboxes. Continue reading →


1
Dec 17

Carding Kingpin Sentenced Again. Yahoo Hacker Pleads Guilty

Roman Seleznev, a Russian man who is already serving a record 27-year sentence in the United States for cybercrime charges, was handed a 14-year sentence this week by a federal judge in Atlanta for his role in a credit card and identity theft conspiracy that prosecutors say netted more than $50 million. Separately, a Canadian national has pleaded guilty to charges of helping to steal more than a billion user account credentials from Yahoo.

Seleznev, 33, was given the 14-year sentence in connection with two prosecutions that were consolidated in Georgia: The 2008 heist against Atlanta-based credit card processor RBS Worldpay; and a case out of Nevada where he was charged as a leading merchant of stolen credit cards at carder[dot]su, at one time perhaps the most bustling fraud forum where members openly marketed a variety of cybercrime-oriented services.

Roman Seleznev, pictured with bundles of cash. Image: US DOJ.

Seleznev’s conviction comes more than a year after he was convicted in a Seattle court on 38 counts of cybercrime charges, including wire fraud and aggravated identity theft. The Seattle conviction earned Seleznev a 27-year prison sentence — the most jail time ever given to an individual convicted of cybercrime charges in the United States.

This latest sentence will be served concurrently — meaning it will not add any time to his 27-year sentence. But it’s worth noting because Seleznev is appealing the Seattle verdict. In the event he prevails in Seattle and gets that conviction overturned, he will still serve out his 14-year sentence in the Georgia case because he pleaded guilty to those charges and waived his right to an appeal.

Prosecutors say Seleznev, known in the underworld by his hacker nicknames “nCux” and “Bulba,” enjoyed an extravagant lifestyle prior to his arrest, driving expensive sports cars and dropping tens of thousands of dollars at lavish island vacation spots. The son of an influential Russian politician, Seleznev made international headlines in 2014 after he was captured while vacationing in The Maldives, a popular destination for Russians and one that many Russian cybercriminals previously considered to be out of reach for western law enforcement agencies.

However, U.S. authorities were able to negotiate a secret deal with the Maldivian government to apprehend Seleznev. Following his capture, Seleznev was whisked away to Guam for more than a month before being transported to Washington state to stand trial for computer hacking charges.

The U.S. Justice Department says the laptop found with him when he was arrested contained more than 1.7 million stolen credit card numbers, and that evidence presented at trial showed that Seleznev earned tens of millions of dollars defrauding more than 3,400 financial institutions.

Investigators also reportedly found a smoking gun: a password cheat sheet that linked Seleznev to a decade’s worth of criminal hacking. For more on Seleznev’s arrest and prosecution, see The Backstory Behind Carder Kingpin Roman Seleznev’s Record 27-Year Sentence, and Feds Charge Carding Kingpin in Retail Hacks.

In an unrelated case, federal prosecutors in California announced a guilty plea from Karim Baratov, one of four men indicted in March 2017 for hacking into Yahoo beginning in 2014. Yahoo initially said the intrusion exposed the usernames, passwords and account data for roughly 500 million Yahoo users, but in December 2016 Yahoo said the actual number of victims was closer to one billion (read: all of its users).  Continue reading →