LOS ANGELES
The Justice Department announced Thursday that federal authorities had arrested a San Fernando Valley man on federal charges alleging a scheme to market and sell malware
The malware gave purchasers control over victim computers and enabled them to access victims’ private communications, login credentials, and other personal information.
Edmond Chakhmakhchyan, 24, of Van Nuys, who used the screen name “Corruption,” was arrested without incident Wednesday by special agents with the FBI.
A two-count indictment was unsealed Wednesday at Chakhmakhchyan’s arraignment. He pleaded not guilty and was ordered to stand trial on June 4. His bond was set at $70,000.
The indictment alleges an agreement between the malware’s creator and Chakhmakhchyan in which Chakhmakhchyan would post advertisements for the Hive remote access trojan (RAT) on the “Hack Forums” website, accept Bitcoin payments for licenses to use the Hive RAT, and provide customer service to those who purchased the licenses.
Customers purchasing the malware “would transmit Hive RAT to protected computers and gain unauthorized control over and access to these computers, which allowed the RAT purchaser to close or disable programs, browse files, record keystrokes, access incoming and outgoing communications, and steal victim passwords and other credentials for bank accounts and cryptocurrency wallets, all without the victims’ knowledge or permission,” according to the indictment.
Chakhmakhchyan allegedly began working with the creator of the Hive RAT, previously known as “Firebird,” approximately four years ago and advertised online the RAT’s many features, including features that allowed the owner to remotely access victim computers and intercept communications and data without the victim’s knowledge.
After advertising the Hive RAT, according to the indictment, Chakhmakhchyan exchanged electronic messages with purchasers and explained to one buyer that the malware “allowed the Hive RAT user to access another person’s computer without that person knowing about the access.”
After this purchaser told Chakhmakhchyan that “the point” of using the Hive RAT was because the victim had “20k in bitcoin on a blockchain wallet” and “project files worth over 5k,” Chakhmakhchyan agreed to sell the Hive RAT, the indictment alleges.
Later, Chakhmakhchyan allegedly sold a Hive RAT license to an undercover law enforcement agency employee.
The indictment charges Chakhmakhchyan with one count of conspiracy – to advertise a device as an interception device, to transmit a code to cause damage to a protected computer intentionally, and to access a computer to obtain information intentionally – as well as one count of advertising a device as an interception device.
Each count carries a statutory maximum penalty of five years in federal prison. The FBI is investigating this matter.
Assistant U. S. Attorney Sue J. Bai of the Terrorism and Export Crimes Section prosecutes this case.
The Australian Federal Police also charged an Australian national who is alleged to have been involved in creating and selling the malware, and the Commonwealth Director of Public Prosecutions will prosecute that matter.