Russian Citizen Sentenced to Federal Prison for Hacking into U.S. Companies and Enabling Major Cybercrime Groups to Extort Tens of Millions of Dollars

SOUTHERN DISTRICT OF INDIANA- Aleksei Volkov, 26, of St. Petersburg, Russia, has been sentenced to 81 months in federal prison for assisting major cybercrime groups, including the Yanluowang ransomware group, carry out numerous attacks against U.S. companies and other organizations. Volkov facilitated dozens of ransomware attacks throughout the United States, causing over $9 million in actual losses and over $24 million in intended losses.

Volkov was indicted for this activity in both the Southern District of Indiana and Eastern District of Pennsylvania. Police in Rome, Italy arrested Volkov and he was extradited to the United States, where he pleaded guilty to unlawful transfer of a means of identification, trafficking in access information, access device fraud, and aggravated identity theft; as well as two counts from the Eastern District of Pennsylvania indictment, namely, conspiracy to commit computer fraud and conspiracy to commit money laundering after the two cases were consolidated in the Southern District of Indiana.

According to court documents, Volkov was an "initial access broker," that is, a person who specializes in gaining unauthorized access to computer networks and systems of corporations and organizations and selling that access to other cyber threat actors such as ransomware groups. Volkov scoured computer networks and systems for vulnerabilities, identified ways to access those networks and systems without authorization, and sold that illicit access to conspirators who were also cybercriminals.

Volkov's conspirators then infected computer networks and systems to which Volkov had given them access with malware. This malware encrypted the victims' data and prevented the victims from accessing it, damaging their business operations. The conspirators then demanded that the victims pay them a ransom in cryptocurrency-sometimes in the tens of millions of dollars-in exchange for restoring the victims' access to the data and promising not to publicly disclose the hack or release victims' stolen data on a "leak" website. In some cases, the victims paid the ransom and in others the conspirators posted the victims' confidential data on the leak site. If the victims paid the ransom, Volkov received a share of the money.

As part of his plea, Volkov admitted that he and his co-conspirators hacked into numerous victims' computer networks, stole their data, deployed ransomware, demanded payment in cryptocurrency to exchange for restoring access to the data, and divided the ransom payments among themselves. In fact, they demanded tens of millions of dollars in ransom and received millions. Volkov agreed to pay full restitution to victims including at least $9,167,198.19 to known victims to compensate them for their actual losses as well as to forfeit equipment he used for his crimes.

"This case shows the strength and determination of our federal prosecutors and partners to protect American companies from global cybercriminals. If you assist ransomware groups in targeting our businesses, we will use the vast resources of the federal government to ensure you face the full force of the United States justice system," Tom Wheeler, U.S. Attorney for the Southern District of Indiana.

"This conviction sends a strong message: the FBI will relentlessly pursue cybercriminals who target U.S. companies and consumers," said FBI Indianapolis Special Agent in Charge Timothy J. O'Malley. "We are taking these criminals off the streets, disrupting global extortion networks, and defending American businesses and citizens from cyber threats."

"The defendant in this case helped set in motion cybercrime attacks targeting dozens of U.S. companies and organizations, including ones by the notorious Yanluowang ransomware group," said Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division. "The defendant thought he could hide behind a keyboard and evade justice, working with others to extort tens of millions of dollars in ransom payments. The Department of Justice will continue to pursue cybercriminals like Mr. Volkov wherever they operate and ensure that they face consequences for their actions."

The FBI investigated this case with valuable assistance provided by The Justice Department's Office of International Affairs and law enforcement authorities in Italy. The sentence was imposed by U.S. District Court Chief Judge James R. Sweeney II.

U.S. Attorney Wheeler thanked Assistant U.S. Attorneys MaryAnn T. Mindrum and Matthew B. Miller, as well as Senior Counsel Matthew A. Lamberti of the Criminal Division's Computer Crime and Intellectual Property Section (CCIPS), Assistant U.S. Attorney for the District of Connecticut Edward Chang (on detail to CCIPS), and Assistant U.S. Attorney Sarah Wolfe for the Eastern District of Pennsylvania.

###