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Canadian linked to ransomware attacks extradited to Tampa, accused of stealing $28M in Bitcoin

TAMPA, Fla. (WFLA) — A former Canadian government employee was extradited to Florida to face charges for his alleged participation in an international ransomware ring. Authorities said Sébastien Vachon-Desjardins, 34, of Gatineau, Quebec, was a prolific member of NetWalker, a ransomware gang that extorted tens of millions of dollars from businesses and governments around the world. “Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims,” the Middle District of Florida said in the news release. According to court documents, the ring was made up of a network of “developers” and affiliates” who infiltrated and encrypted computer networks with ransomware. The developers would design the software and the affiliates would use it to identify and attack their victims. Once they had access to their victims’ computer networks, and the data was encrypted, they would use Tor to send ransom notes to the victims, demanding payments. After the victim pays, the developers and the affiliates split the ransom money. The release said Vachon-Desjardins obtained more than $28 million through NetWalker. He was arrested at his home in Quebec on Jan. 27. Authorities seized 719 Bitcoin, valued at approximately $28,151,582 as of today’s date, and $790,000 in Canadian currency. The indictment said the United States plans to forfeit more than $27 million, “which is alleged to be traceable to proceeds of the offenses.” “As exemplified by the seizure of cryptocurrency by our Canadian partners, we will use all legally available avenues to pursue seizure and forfeiture of the alleged proceeds of ransomware, whether located domestically or abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “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.” Vachon-Desjardins is charged 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. The release said Vachon-Desjardins was a former government employee in Canada, but did not mention which agency he worked for. He is scheduled to appear before U.S. Magistrate Judge Julie S. Sneed in Tampa on Thursday. The FBI’s Tampa Field Office is investigating the case.
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Written by: Athina Morris