The Justice Department says a ransomware ring exploited Russian government databases

A US court has sentenced Latvian hacker Denis Zolotargov to more than eight years in prison after convicting him of carrying out ransomware attacks.

The Justice Department accused the hacker of working for a notorious Russian ransomware gang called Karakurt, which was led by former leaders of the Akira and Conte ransomware gangs, who were sanctioned by the US Treasury Department over their alleged ties to Russian intelligence.

Prosecutors said Karakurt members targeted U.S. government entities with attacks that disabled the 911 emergency dispatch system, and also stole children’s health information. The Ministry of Justice said Zolotargov was responsible for “escalating pressure” on victims who resisted the gang’s ransom demands.

While Zolotargovs’ conviction is notable in itself, US prosecutors said in their press release that the ransomware ring relied on access to Russian government databases and law enforcement communications to intimidate its victims, further underscoring the links between the cybercriminals’ activities and the Russian state.

Security researchers have long accused the Russian government of protecting ransomware gangs and malicious hackers from Western law enforcement, including by refusing to extradite its own citizens accused of malicious hacking. US officials have said in recent years that Russia has become a “safe haven” for cybercriminals, citing the threat posed by ransomware as one of the biggest national security challenges facing the United States.

According to the Ministry of Justice, the Karakurt Ransomware gang “fueled corruption” in the Russian government; These relationships with officials allowed the gang’s leaders to avoid paying taxes to the state, and the gang regularly paid bribes to officials who exempted members from compulsory Russian military service.

The Russian Foreign Ministry did not respond to TechCrunch’s request for comment.

According to the Department of Justice, the Karakurt gang targeted more than 54 companies, and victims paid at least $15 million in ransom. Karakurt does not appear to be an active ransomware gang; Some operations change owners and names, sometimes to evade sanctions.

Zolotarjovs was arrested in the country of Georgia in 2023 and extradited to the United States in August 2024. He later pleaded guilty.

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