The US Justice Department has launched a probe into a former ransomware negotiator, accused of striking deals with hackers to take a cut of the crypto used to pay the extortionists.
In a statement to Cointelegraph, DigitalMint President Marc Grens confirmed that one of the firm’s former employees is the target of an ongoing criminal investigation and was “immediately terminated” when the allegations came to light.
“The investigation evidently involves alleged unauthorized conduct by the employee while employed here.”
The Chicago-based company assists victims with ransomware negotiations and payments to hackers. The story was first reported by Bloomberg on Thursday, citing a person familiar with the matter.
DigitalMint is not in the firing line
Grens also said, “DigitalMint is not a target of the investigation and has been ‘cooperating fully with law enforcement.”
He added that once discovered, DigitalMint “acted swiftly to protect our clients. Trust is earned every day. As soon as we were able, we began communicating the facts to affected stakeholders.”
DigitalMint said on its website that it specializes in securely handling ransomware incidents and facilitating secure payments to hackers.
Its client base includes Fortune 500 companies and is registered with the US Financial Crimes Enforcement Network, the firm said.
Ransomware payments down
Fewer companies are giving in to criminals’ demands, with a February report from cyber incident response firm Coveware finding that only 25% of companies hit with extortion demands in the last quarter of 2024 paid the ransom.
In the third quarter of 2024, 32% of companies that received ransom demands paid, compared to 36% in the previous quarter, according to Coveware data. This was down significantly compared to the first quarter of 2019, when 85% paid the ransom when demanded.
Coveware said the drop “suggests that more organizations are improving their cybersecurity defenses, implementing better backup and recovery strategies, and refusing to fund cybercriminals.”
However, the firm also said the decline could be because of “increased law enforcement efforts” and “stronger regulatory guidance discouraging ransom payments.”
Meanwhile, in the latest salvo against ransomware gangs, the US Treasury sanctioned Russia-based Aeza Group on Tuesday, along with…
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