[BreachExchange] Ex-Canadian government official extradited to US on ransomware charges

[Terrell Byrd]

https://www.wtsp.com/article/news/nation-world/canadian-extradited-to-us-on-ransomeware-charges/507-36d52b52-0015-4db2-8723-77e1d23016c3

TAMPA, Fla. — A Quebec man who previously worked for the Canadian
government has been extradited to the United States to face charges for a
series of ransomware attacks in which prosecutors say he stole more than
$28 million in cryptocurrency.

A grand jury has indicted Sebastien Vachon-Desjardins, 34, with conspiracy
to commit computer fraud and wire fraud, intentional damage to a protected
computer, and transmitting a demand in relation to damaging a protected
computer arising from his alleged participation in a sophisticated form of
ransomware known as NetWalker, according to the Department of Justice.

"The department will not cease to pursue and seize cryptocurrency ransoms,
thereby thwarting the attempts of ransomware actors to evade law
enforcement through the use of virtual currency," said Assistant Attorney
General Kenneth A. Polite Jr.

According to the Cybersecurity and Infrastructure Security Agency (CISA),
NetWalker is a type of ransomware that encrypts the data of the infected
computer and corresponding servers. Users are then forced to pay a "ransom"
of cryptocurrency like Bitcoin in order to decrypt the data.

NetWalker has been used since 2019 to carry out global extortions, but it
was widely used to attack healthcare systems in 2020 as COVID-19 flooded
hospitals with patients. In one case, a patient in Germany died after a
Dusseldorf hospital's system was disabled, as reported by CISA.

The code of NetWalker was developed by Russian speakers, and the
programming prohibits infection among Russian servers. The DOJ did not
state whether Vachon-Desjardins had a connection to other Russian hackers.

“This case illustrates effective international law enforcement cooperation
directed at identifying cybercriminals, holding them accountable for their
alleged criminal actions, and recovering funds allegedly stolen from their
victims," said  U.S. Attorney Roger B. Handberg for the Middle District of
Florida.

The FBI’s Tampa Field Office is investigating the case and was supported by
cooperation from by the Royal Canadian Mounted Police, Ontario Provincial
Police, Gatineau Police Service, and National Cybercrime Coordination Unit.
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