CLEVELAND — Federal prosecutors in Ohio have unsealed a broad cybercrime indictment against two Russian companies and three people accused of operating a Russia-based online service that investigators say enabled hackers around the world to perform ransomware, malware and other damaging cyberattacks.
The case is being prosecuted in Ohio because of the large number of victims in the state, authorities said.
U.S. Attorney for the Northern District of Ohio David Toepfer said the alleged crimes affected victims in 21 states and in countries around the world, causing more than $62 million in losses.
The indictment charges two companies — Media Land and ML.Cloud — along with three individuals based in St. Petersburg, Russia. Investigators allege that the defendants operated infrastructure that allowed cybercriminals to launch attacks against hospitals, schools, civic organizations and businesses.
“Cybercrimes like this are a matter of national security,” Toepfer said.
According to prosecutors, the companies provided so-called “bulletproof hosting” services, which shield criminal activity from law enforcement and allow cybercriminal operations to remain online. Authorities said the network fueled ransomware, malware and brute-force attacks worldwide.
“Media Land through the darknet was a borderless powerhouse of criminal activity that not only fueled the rise and persistence in ransomware, malware and brute force attacks worldwide, but also a multitude of illegal acts with the capacity to inflict reputational damage and economic harm,” Joshua Del Manzo, the special agent in charge with FBI Cleveland said.
Victims in Ohio were identified in Akron, Brookfield, Canton, Cleveland, Elyria, Findlay, Medina and Valley View.
Federal investigators said the case grew out of a Cleveland FBI investigation that began seven years ago.
“Because of the investigative team’s tireless efforts, the cyber infrastructure supporting American hospitals, schools, civic organizations and companies are safer,” Toepfer said.
Authorities said they have shut down the ability of Media Land and ML.Cloud to provide hosting services to cybercriminals, calling it a major disruption to a significant part of the global cybercrime ecosystem.
“We have effectively shut down Media Land and ML Cloud’s ability to provide hosting services to cybercriminals wherever they operate,” Toepfer said. “This approach identified and exposed the largest bulletproof hosting service in the world, and struck a serious blow to malicious ransomware and malware actors everywhere.”
Prosecutors acknowledged that the suspects Aleksandr Volosovik, Yulia Pankova and Kirill Zatolokin remain in Russia, but said dismantling the companies’ infrastructure is still a significant victory in the fight against global cybercrime.
The U.S. State Department is offering a reward of up to $10 million, and possible relocation, for information about government-linked associates of the Russian individuals and companies charged in the case.
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