Canadian Netwalker ransomware affiliate faces 20 years in prison and $21.5 million fine
The Canadian hacker was arrested in Quebec after a search revealed 719 Bitcoin and hundreds of thousands of Canadian dollars believed to be stolen funds
Sebastien Vachon-Desjardins faces a $21.5 million fine and up to 20 years in prison after pleading guilty to his affiliate role with the NetWalker ransomware as a Service (RaaS) operation.
The 35-year-old Canadian national, deported from Quebec earlier this year, was convicted on four counts of fraud and conspiracy.
RELATED RESOURCE
Escape the ransomware maze
Conventional endpoint protection tools just aren’t the best defence anymore
The charges levied upon the hacker in a federal court in Florida this week included: conspiracy to commit computer fraud, conspiracy to commit wire fraud, intentional damage to a protected computer, and transmitting a demand in relation to damaging a protected computer
Vachon-Desjardins was a former employee of the Canadian government at the Public Works and Government Services agency and was first arrested on January 27, 2021, in connection with the Russian state-linked NetWalker cyber crime outfit.
Following this initial arrest, he was sentenced by a Canadian judge to more than six years in prison before being extradited to face criminal charges in the US.
He is alleged to have obtained at least $27.6 million as a result of his participation in fraud offenses involving NetWalker ransomware between April and December 2020.
The NetWalker ransomware operation extorted tens of millions of US dollars since its inception in 2019, according to the US Department of Justice (DoJ), Affiliates of the operation were tasked with deploying the encryptor payload and received a share of all ransom payments.
Sign up today and you will receive a free copy of our Future Focus 2026 report - the leading resource for IT decision-maker insight on priorities and investment areas in AI, security and more.
"The defendant identified and attacked high-value ransomware victims and profited from the chaos caused by encrypting and stealing the victims’ data,” said General Kenneth A. Polite, Jr, assistant attorney of the US DoJ's Criminal Division.
“Today’s sentence demonstrates that ransomware actors will face significant consequences for their crimes and exemplifies the Department’s steadfast commitment to pursuing actors who participate in ransomware schemes.”
The DoJ also said Vachon-Desjardins was personally responsible for attacks on "hundreds of victims in numerous countries".
Vachon-Desjardins was sentenced to a total of 240 months (20 years) in prison and will also have to serve three years of supervised release following his jail term.
The Canadian will also be prohibited from working in IT or using a device capable of connecting to the internet, including a smartphone.
The ransomware operation was dismantled by the US Justice Department in January 2021 with support from the Bulgarian National Investigation Service and General Directorate Combating Organized Crime. All sites on the dark web intended for negotiating payments for data decryption by NetWalker were subsequently seized.
-
Why security teams need to start operating like engineersNews As AI-powered coding accelerates, security teams need to start operating like developers
-
The key to a successful IT strategyPodcast Exploring how IT leaders can implement change, lead by example, and deliver successful transformation projects
-
Companies are still paying ransoms to cyber criminals despite official adviceNews A Proofpoint survey found evolving ransomware techniques and the use of AI is exacerbating the situation for victims
-
This one cyber crime group accounted for nearly a fifth of all ransomware attacks in JuneNews The Gentlemen, a ransomware a service operator, now accounts for 17% of published attacks
-
Working with the enemy: Ransomware negotiator-turned cyber criminal jailed after working with hackers to extort clientsNews Angelo Martino was supposed to be negotiating on behalf of victims, but was secretly working for ransomware operators
-
Hackers are posing as Interpol to target small businesses – here's what you need to knowNews Small businesses are warned to think twice before clicking on links
-
‘Every hour ransomware goes undetected drastically increases its potential blast radius’: Hackers are breaching networks and laying low for longer – and nearly half of firms don’t realize until data is stolenNews An ExtraHop survey found more intrusions are going undetected, leading to longer dwell times
-
Ransomware cartels are fragmenting into volatile splinter groups, warns Met Police cyber chiefNews Commoditized "cyber crime bazaars" and AI data mining are forcing law enforcement to rewrite its playbook
-
New ransomware threat group, The Gentlemen, has become one of the most active ransomware operators, accounting for 10% of all attacksNews NTT researchers warn that the RaaS group is leveraging SystemBC malware to establish covert tunnelling, evade detection, and support rapid lateral movement across enterprise environments
-
Instructure chose to a pay ransom following the Canvas cyber attack – research shows more than half of security leaders would follow suitAnalysis Opting to pay ransoms creates huge risks for enterprises – you’re relying on the word of criminals