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Date: 05-07-2019
Case Style:
United States of America v. Marcus Hutchins, a/k/a "Malware Tech"
Case Number: 2:17-cr-00124-JPS
Judge: J.P. Stadtmueller
Court: United States District Court for the Eastern District of Wisconsin (Milwaukee County)
Plaintiff's Attorney: Benjamin Proctor and Benjamin Taibleson
Defendant's Attorney: Brian E. Klein, Marcia C. Hofmann, Daniel W. Stiller
Description:
Milwaukee, WI - Marcus Hutchins Pleads Guilty to Creating and Distributing the Kronos Banking Trojan and UPAS Kit Malware
Marcus Hutchins, aka “MalwareTech,” pleaded guilty to two counts relating to his creation and distribution of the Kronos banking Trojan and UPAS Kit malware. This includes one count of conspiracy to commit computer fraud in violation of Title 18, United States Code, Section 371, and one count of advertising a device used to intercept electronic communications, in violation of Title 18, United States Code, 2512(1)(c)(i).
According to admissions made in connection with his plea, Hutchins, age 24, developed UPAS Kit and Kronos and then worked with an accomplice to sell the malware programs for profit. Both UPAS Kit and Kronos were designed to be deployed secretly on victim computers, and then to intercept communications and transmit personal information, including usernames, passwords, email addresses, and financial data to the person controlling malware program. The malware was specially tailored to target victims’ banking information. Since 2014, Kronos has been used to infect numerous computers around the world and steal banking information.
Hutchins and his accomplice, “Vinny,” advertised Kronos and UPAS on various websites, including the AlphaBay market and Darkode forum. The advertisements highlighted the ability of the malware to steal information and avoid antivirus programs. Hutchins updated the malware code as needed, and Vinny and Hutchins shared profits from the sales.
“Vigorous prosecution of cybercrimes is vitally important because the stakes are so high: The proliferation of malware poses serious threats to our nation’s infrastructure, our businesses, and our personal information,” said U.S. Attorney Krueger. “We commend the FBI’s Cyber Division for its excellent work in investigating this sophisticated and dangerous crime.”
Hutchins faces a maximum term of 5 years imprisonment and up to one year of supervised release on each count.
This case was investigated by the Federal Bureau of Investigation Cyber Crime Task in Milwaukee.
Charge:
18:371 - CONSPIRACY TO DEFRAUD THE UNITED STATES
(1)
18:371 - CONSPIRACY TO DEFRAUD THE UNITED STATES
(1s)
18:2512(1)(c)(i) and 2 - MANUFACTURE/DISTR/POSSESS/ADVERTISE WIRE/INTERCEPT DEVICE
(2)
18:2512(1)(c)(i) and 2 - MANUFACTURE/DISTR/POSSESS/ADVERTISE WIRE/INTERCEPT DEVICE
(2s)
18:2512(1)(a) and 2 - MANUFACTURE/DISTR/POSSESS/ADVERTISE WIRE/INTERCEPT DEVICE
(3)
18:2512(1)(c)(ii) and 2 - MANUFACTURE/DISTR/POSSESS/ADVERTISE WIRE/INTERCEPT DEVICE
(3s)
18:2512(1)(b) and 2 - MANUFACTURE/DISTR/POSSESS/ADVERTISE WIRE/INTERCEPT DEVICE
(4)
18:2512(1)(a) and 2 - MANUFACTURE/DISTR/POSSESS/ADVERTISE WIRE/INTERCEPT DEVICE
(4s)
18:2511(1)(a), (4)(a) and 2 - INTERCEPTION AND DISCLOSURE OF WIRE OR ORAL COMMUNICATIONS
(5)
18:2512(1)(b) and 2 - MANUFACTURE/DISTR/POSSESS/ADVERTISE WIRE/INTERCEPT DEVICE
(5s)
18:1030(a)(5)(A), (c)(4)(B)(i) and (ii), (c)(4)(A)(i)(VI), 1030(b) and 2 - FRAUD ACTIVITY CONNECTED WITH COMPUTERS
(6)
18:2511(1)(a), (4)(a) and 2 - INTERCEPTION AND DISCLOSURE OF WIRE OR ORAL COMMUNICATIONS
(6s)
18:1030(a)(5)(A), (c)(4)(B)(i) and (ii), (c)(4)(A)(i)(VI), 1030(b) and 2 - FRAUD ACTIVITY CONNECTED WITH COMPUTERS
(7s)
18:1030(a)(2)(C), (c)(2)(B)(i), 1030(b) and 2 - FRAUD ACTIVITY CONNECTED WITH COMPUTERS
(8s)
18:1001(a)(2) - STATEMENTS OR ENTRIES GENERALLY
(9s)
18:1349 - ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD
(10s)
Outcome: REPORT AND RECOMMENDATION regarding Change of Plea as to Marcus Hutchins signed by Magistrate Judge Nancy Joseph. (cc: all counsel) (blr)
Plaintiff's Experts:
Defendant's Experts:
Comments: