Ransomware Negotiator Pleads Guilty to Aiding Hackers Targeting His Own Clients
A Florida man who worked as a ransomware negotiator pleaded guilty to conspiring to carry out ransomware attacks against the very companies he was hired to help.
Angelo Martino admitted to collaborating with operators of the BlackCat/ALPHV (“BlackCat”) ransomware group, while working as a ransomware negotiator at DigitalMint, trying to help companies hit by BlackCat.
According to court documents, beginning in April 2023, Martino abused his role at DigitalMint by providing BlackCat attackers with confidential information about clients’ internal negotiating positions and insurance limits—allowing the hackers to demand and extract higher ransom payments. In return, Martino was paid by the group.
“Ransomware victims turned to this defendant for help, and he sold them out from the inside,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida.
Five U.S.-based victims that hired DigitalMint paid out a combined $75.3 million in ransom, including a nonprofit that shelled out nearly $27 million and a financial services company that paid nearly $26 million.
In addition, prosecutors say Martino admitted to conspiring with two others to successfully deploy BlackCat ransomware against multiple victims across the United States. The trio allegedly extorted one victim for $1.2 million in Bitcoin.
DigitalMint says it immediately fired Martino after learning of the Department of Justice (DOJ) investigation.
To date, law enforcement has seized $10 million in assets from Martino, including cryptocurrency, vehicles, a food truck, and a luxury fishing boat allegedly purchased with proceeds from the scheme.
Sentencing in July
Martino pleaded guilty to one count of conspiracy to obstruct, delay or affect commerce or the movement of any article or commodity in commerce by extortion. He faces 20 years in prison when sentenced on July 9.
“His guilty plea demonstrates that, for all the international aspects of cybercrime, the threat is also here in the United States. The FBI is proud of the close collaboration with partners that led to this outcome,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division.
The FBI’s Miami field office is leading the investigation with assistance provided by the U.S. Secret Service.
