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Ukrainian lawyer's second career as a Conti coder earns him 4 years behind bars

Ukrainian lawyer turned Conti malware coder sentenced to four years in US prison, ordered to forfeit $25,042 in Bitcoin.

Oleksii Oleksiyovych Lytvynenko, 44, a trained lawyer who joined Conti under the handle "henry", pleaded guilty in June to conspiracy to commit wire fraud and was sentenced to four years. He coded a malware loader, researched targets using Google and ZoomInfo, and possessed data stolen from eight US victims who reported over $1.5 million in losses. Investigators found Cobalt Strike running and a Rocket.Chat session over Tor on his laptop when Gardaí arrested him in County Cork, Ireland in July 2023; he was extradited to the US in October 2025. Conti attacked over 1,000 victims across 47 US states and 31 countries, with payouts exceeding $150 million by January 2022.

The Register · Securityupdated · 5d agofirst · 6d agoPolicy & legal 7 sources

Five plead guilty in latest federal ATM jackpotting case

Five Venezuelan nationals pleaded guilty to ATM jackpotting conspiracy tied to Ploutus malware, as FBI tallies $58 million in losses since 2021.

Five Venezuelan nationals pleaded guilty in Kansas federal court to conspiracy to commit bank larceny for attempted ATM jackpotting attacks in Wamego and Manhattan in December 2025; Luis Velasquez-Artigas was sentenced to nine months. The FBI says jackpotting has caused over $58 million in losses since 2021, with more than 1,900 incidents tracked since 2020 and over 700 in 2025. Separately, Juan Manuel Gouveia-Aguilera was sentenced to eight years and ordered to pay restitution for using Ploutus malware to steal more than $3.5 million from hundreds of ATMs. Prosecutors link the schemes to the Venezuelan gang Tren de Aragua and say at least 119 people have been charged.

The Record · 16d agoPolicy & legal

Party’s Over for Crypto Scammers Who Went on a Spending Spree After a $240 Million Bitcoin Theft

Malone Lam's plea hearing approaches in the $240 million bitcoin social engineering theft; the case highlights surging crypto fraud and limited enforcement.

Malone Lam, accused of organizing a social engineering attack that stole over $240 million in bitcoin (4,100+ BTC) from a Washington, D.C. resident in August 2024, has a plea agreement hearing set. Callers impersonating Google and Gemini staff tricked the victim into revealing security codes. Lam and 17 co-defendants spent lavishly before FBI arrests; crypto investment fraud complaints to the FBI rose nearly 50% in 2025 while DOJ disbanded its crypto crimes unit.

SecurityWeek · 9d agoPolicy & legal

ChatGPT-using lawyer punished for citing fake testimony from made-up witnesses

New Mexico Supreme Court holds lawyer in contempt for filing a ChatGPT-generated brief citing fabricated witness testimony; fined $5,000 and referred to disciplinary board.

The New Mexico Supreme Court held criminal defense lawyer Stephen Aarons in direct contempt for filing a murder-appeal brief containing false testimony from wholly fabricated witnesses, including Officer Michelle Amarillo and Officer Sanchez, plus misrepresented legal authority. Aarons admitted feeding a computer-generated trial transcript into ChatGPT, powered by the OpenAI o3 model, and filing the output without verifying factual claims or telling his client. He was fined $5,000, referred to a disciplinary board, and barred from appearing before the court pending proceedings; the court struck all briefs and ordered new counsel for client Oscar Renee Sandoval.

Ars Technica · AIupdated · 5d agofirst · 5d agoAI safety & security 2 sources

US government snitch-finder pleads guilty to leaking state secrets to foreign spies

A Defense Intelligence Agency insider threat specialist pleaded guilty to leaking state secrets to a foreign government shortly after joining the Insider Threat Division.

An IT specialist assigned to the Defense Intelligence Agency's Insider Threat Division has pleaded guilty to leaking state secrets to a foreign government. According to The Register, the individual began contacting the foreign government within days of being assigned to the division. The case underscores insider risk in an unit tasked with detecting exactly such behavior.

The Register · Security · 19d agoPolicy & legal

Early 764 member sentenced to 77 years, longest prison term to date for a nihilistic violent extremist

Kyle Spitze, an early 764 member, was sentenced to 77 years for producing CSAM, the longest sentence for a nihilistic violent extremist.

Kyle William Spitze, an original member of the 764 nihilistic violent extremist network and administrator of the Harm Nation offshoot, was sentenced to 77 years in federal prison. He pleaded guilty in December 2024 to producing child sexual abuse material, possession of CSAM, and distributing animal crush videos, victimizing dozens of girls through coercion, doxing and swatting threats. Investigators found roughly 25 photo albums of abuse imagery on his phone and evidence of animal torture. The Justice Department framed the sentence as a signal in a broader enforcement push against 764, which has seen multiple members arrested or sentenced since 2025.

CyberScoop · 27d agoPolicy & legal

First ‘Take It Down Act’ Sentencing Puts Man Behind Bars for 15 Years

Ohio man James Strahler gets the first US Take It Down Act sentence: 15 years for distributing real and AI-generated abuse imagery.

James Strahler, 38, became the first person convicted under the Take It Down Act, receiving a 15-year federal prison sentence after investigators found more than 3,000 real and AI-generated abuse images across his devices, including over 700 he posted online. He pleaded guilty to cyberstalking, producing obscene visual representations of child sexual abuse, and publication of digital forgeries after victims received threats, extortion demands, and AI-fabricated explicit images; the FBI took over the case in June. The federal law, which took effect in May, criminalizes knowingly publishing or threatening to publish nonconsensual intimate imagery, and free-speech advocates have criticized its 48-hour platform removal window as a censorship risk.

404 Media · 7d agoPolicy & legal

Bernie's AI bill proposes to sentence AI developers to 20 years in prison

Senator Bernie Sanders proposed AI legislation that would impose criminal penalties on AI developers, including sentences of up to 20 years in prison.

A Hacker News discussion (21 points, 4 comments) links to a tweet about Bernie Sanders' AI bill, which would establish criminal liability for AI developers, with potential 20-year prison sentences. The proposal targets individual developers rather than only companies. As a proposed bill, it has not been enacted, and the linked discussion is brief.

Hiding Prompt Injection in Legal Filing

A judge banned a plaintiff from electronic court filings after hidden prompt-injection text was discovered planted in legal documents.

Bruce Schneier's blog discusses an incident in which hidden prompt-injection instructions were planted inside a legal filing, apparently targeting AI systems that might process court documents. Judge Walter Spader Jr. responded by banning the plaintiff from electronic filings, requiring all future submissions as printed hard copies. Commenters debate whether the tactic could affect future AI-based processing of court records and whether plain-text formats will regain favor.

Schneier on Security · 17d agoAI safety & security in the wild

Singaporean Ringleader of $245 Million Cryptocurrency Racketeering Enterprise Pleads Guilty in Washington D.C.

Singaporean Malone Lam pleaded guilty in Washington D.C. to leading a social-engineering conspiracy that stole and laundered over $245 million in cryptocurrency.

Malone Lam, a 22-year-old Singaporean citizen residing in Miami, pleaded guilty in U.S. District Court in Washington D.C. for his role as ringleader of an international cybercrime conspiracy. The group used social engineering to steal cryptocurrency valued at more than $245 million and launder the proceeds. U.S. Attorney Jeanine announced the plea, which marks a major milestone in the prosecution of the crypto theft ring.

DataBreaches.net · 8d agoPolicy & legal

Man gets 15 years for extorting women with AI-generated porn videos

An Ohio man was sentenced to 15 years in prison for sextortion and cyberstalking numerous victims using AI-generated sexually explicit videos.

An Ohio man received a 15-year prison sentence for multiple cybercrimes. The offenses included sextortion and cyberstalking of numerous victims, with AI-generated sexually explicit content used against the victims. The case illustrates criminal justice outcomes for offenders using AI-generated imagery in extortion schemes.

BleepingComputer · 8d agoPolicy & legal

Five Venezuelan Nationals Plead Guilty in Kansas ATM Jackpotting Attempt

Five Venezuelan nationals pleaded guilty to failed ATM jackpotting attempts in Kansas as the FBI reports 700+ US incidents in 2025.

The five defendants traveled from Indiana to Kansas in December 2025 and tried to install malware on ATMs in Wamego and Manhattan, planning to remotely trigger the machines to dispense cash. Both attempts failed — one triggered an alarm — and the men were arrested days later after surveillance captured the thefts. All five pleaded guilty to conspiracy to commit bank larceny; one has received a nine-month prison sentence. The FBI counted more than 700 jackpotting incidents in 2025 with over $20 million in losses, part of 1,900 incidents since 2020.

Security Affairs · 15d agoPhishing & fraud

Tech contractor for Brightly Software sentenced to 2 years in prison for insider attack

Cameron Curry sentenced to two years for stealing Brightly Software employee data and extorting the Siemens-owned firm for $7,540.92.

Cameron Nicholas Curry, a 27-year-old data analyst contractor at Siemens-owned Brightly Software, stole corporate and sensitive payroll data between August and December 2023 and sent more than 60 threatening emails to employees after his contract ended. He demanded roughly $2.5 million but received $7,540.92 in late January 2024, and was convicted of six counts of extortion in March. He was sentenced to two years in prison plus one year of supervised release, less than the 12-year maximum, after investigators traced him via operational security mistakes including a Coinbase account linked to family debit cards.

CyberScoop · Aug 13, 2026Policy & legal

Bad Likert Judge: A Novel Multi-Turn Technique to Jailbreak LLMs by Misusing Their Evaluation Capability

Unit 42 details the Bad Likert Judge multi-turn jailbreak that abuses LLMs' evaluation capability, raising attack success rates over 60% across six frontier models.

Palo Alto Networks Unit 42 describes the Bad Likert Judge technique, a multi-turn jailbreak that asks a target LLM to act as a Likert-scale judge scoring the harmfulness of example responses. The highest-rated example in each scale can carry harmful content, bypassing the model's internal guardrails. Testing across six state-of-the-art text-generation LLMs showed an average attack success rate increase of more than 60% versus plain attack prompts, with tested models anonymized. The technique targets edge cases rather than typical use, and the article positions the work as guidance for defenders on potential jailbreak risks.

Palo Alto Unit 42 · Aug 17, 2026AI safety & security

Jail time for Maine child in 764 marks turning point in federal law enforcement

A 17-year-old from Maine became the first minor federally adjudicated for 764 extremist crimes, including child exploitation, signaling a policy shift on prosecuting juveniles.

The FBI said a Maine teenager is the first child federally charged and adjudicated for crimes tied to the nihilistic violent extremist collective 764, part of The Com network. Charges include conspiracy to sexually exploit a child, distributing CSAM, interstate threats, cyberstalking, and identity theft. The case marks a turning point in federal policy on prosecuting juveniles and continues heightened enforcement: Kyle Spitze was sentenced to 77 years and Alexis Chavez to 40 years in related cases. The FBI is investigating more than 500 subjects connected to 764 and its offshoots nationwide.

CyberScoop · 14d agoPolicy & legal

Scammer behind $245 million crypto heist pleads guilty to RICO charges

Malone Lam, leader of a social engineering ring that stole over $245 million in cryptocurrency, pleaded guilty to US RICO charges.

Singaporean national Malone Lam, 22, pleaded guilty to RICO conspiracy charges for leading the 'Social Engineering Enterprise,' which stole more than $245 million in cryptocurrency. The group posed as Apple and Google customer support, tricked victims into installing remote desktop software, and even burgled homes to steal hardware wallets, including $263 million from a single Washington, D.C. victim. At least nine others have already pleaded guilty; Lam faces a December 8 sentencing hearing and a possible 7-to-20-year term.

The Record · 8d agoPhishing & fraud

$245 million in stolen crypto funded racketeering crew’s lavish lifestyle

Malone Lam pleaded guilty in D.C. federal court to a racketeering conspiracy that stole and laundered over $245 million in cryptocurrency via social engineering.

Malone Lam, a 22-year-old Singapore citizen, pleaded guilty in Washington D.C. federal court to running a racketeering conspiracy that stole and laundered more than $245 million in cryptocurrency. The operation ran from at least October 2023 through May 2025, grew out of online gaming platforms, and relied on social engineering to trick victims into surrendering wallet access, sometimes including break-ins to victims' homes. Lam was arrested on September 18, 2025 in Miami; prosecutors said members spent lavishly on nightclubs, private jets, and exotic cars priced from $100,000 to $3.8 million.

Help Net Security · 8d agoPhishing & fraud

Ministry of Justice apologizes after court staff accessed Southport victims' files

UK Ministry of Justice apologized after court staff accessed Southport attack victims' files without authorization, exposing sensitive personal data with no evidence of third-party sharing.

The UK Ministry of Justice apologized after court staff accessed case files related to victims and survivors of the 2024 Southport murders without authorization, including sensitive personal data assessed as high risk for some individuals. There is no evidence the information was shared with third parties. HM Courts and Tribunals Service and HM Prison and Probation Service are investigating, and the Information Commissioner's Office has been informed. The incident follows similar unauthorized record access at North West Ambulance Service and Aintree University Hospital.

The Register · Security · 1d agoData breach

Ukraine moves to crack down on scam call centers after corruption scandal

Ukraine's parliament passed legislation criminalizing fraudulent call centers with 7-12 year prison terms after a bribery scandal implicating prosecutors.

Ukraine's Verkhovna Rada passed legislation making electronic-communications fraud and organizing or working for fraudulent call centers separate crimes punishable by 7-12 years, awaiting President Zelensky's signature. The bill advanced after NABU alleged prosecutors took bribes since mid-2025 to shield scam call centers; five suspects were named and Prosecutor General Ruslan Kravchenko, who denies wrongdoing, was dismissed by parliament and presidential decree. Ukrainian authorities previously reported 411 searches and 94 suspected call centers shut down in one week, including a Kyiv operation that stole over $500,000 from dozens of Americans.

The Record · 1d agoPolicy & legal