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A former employee of a major U.S. industrial company has pleaded guilty to hacking the company’s computer network and extorting employees for a $750,000 ransom payment. Daniel Rhyne, a 59-year-old Missouri resident, admitted to executing an unauthorized remote access scheme and deploying malicious code to damage the company’s servers unless his ransom demand was met.
Why it matters
This case highlights the growing threat of insider threats and the vulnerability of critical infrastructure to malicious cyberattacks. As companies increasingly rely on digital systems, disgruntled former employees with technical expertise pose a serious risk of disrupting operations and compromising sensitive data.
The details
According to court documents, Rhyne, who previously worked as a core infrastructure engineer at the unnamed industrial company in New Jersey, initiated unauthorized remote desktop sessions and prepared malicious tasks to delete network administrator accounts, change passwords, and shut down multiple company servers. On November 25, 2023, Rhyne began deploying these tasks and sent an extortion email demanding approximately 20 bitcoin, worth around $750,000 at the time, to prevent further damage.
- In or around November 2023, Rhyne took steps to execute the hacking and extortion scheme.
- On November 25, 2023, Rhyne began deploying the malicious tasks and sent the extortion email.
- On April 1, 2026, Rhyne pleaded guilty to the charges in federal court.
The players
Daniel Rhyne
A 59-year-old former employee of the industrial company who pleaded guilty to hacking the company’s network and extorting employees.
Robert Frazer
The U.S. Attorney who announced Rhyne’s guilty plea.
Victim-1
The U.S.-based industrial company headquartered in New Jersey that was the target of Rhyne’s hacking and extortion scheme.
Stefanie Roddy
The Special Agent in Charge of the FBI’s Newark Field Office, which led the investigation.
Stephen A. Cyrus
The Special Agent in Charge of the FBI’s Kansas City office, which assisted in the investigation.
What they’re saying
“This case highlights the growing threat of insider threats and the vulnerability of critical infrastructure to malicious cyberattacks.”
— Robert Frazer, U.S. Attorney
What’s next
Rhyne is scheduled to be sentenced on July 15, 2026, where he could face up to 15 years in prison and significant fines.
The takeaway
This case underscores the importance of robust cybersecurity measures, employee background checks, and ongoing monitoring to mitigate the risks posed by disgruntled insiders with access to critical systems. Companies must remain vigilant and proactive in protecting their digital assets from malicious actors, both external and internal.
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