{"id":26315,"date":"2026-10-19T11:00:08","date_gmt":"2026-10-19T19:00:08","guid":{"rendered":"https:\/\/www.palada.net\/index.php\/2026\/10\/19\/feds-suspect-ransom-negotiator-ran-shinyhunters-extortion-site\/"},"modified":"2026-10-19T11:00:08","modified_gmt":"2026-10-19T19:00:08","slug":"feds-suspect-ransom-negotiator-ran-shinyhunters-extortion-site","status":"publish","type":"post","link":"http:\/\/www.palada.net\/index.php\/2026\/10\/19\/feds-suspect-ransom-negotiator-ran-shinyhunters-extortion-site\/","title":{"rendered":"Feds Suspect Ransom Negotiator Ran ShinyHunters Extortion Site"},"content":{"rendered":"

U.S. federal investigators pursuing the ShinyHunters<\/strong> hacking group that recently stole highly sensitive data from the FBI<\/strong> have identified executives at two different ransomware negotiation firms who maintained unusually close relations with the extortion group, KrebsOnSecurity has learned. Sources close to the investigation say one of the executives in the United States even helped ShinyHunters operate a website that pressured victims into paying a ransom.<\/p>\n

Hackers aligned with ShinyHunters have claimed credit for dozens of major data breaches since 2019, when the group was primarily operated by cybercriminals living in France. As those original members were arrested or jailed one by one, control over the ShinyHunters brand eventually passed to \u201cRey<\/strong>,\u201d identified last year<\/a> as a teenage hacker from Amman, Jordan. According to the FBI, ShinyHunters has extorted more than $70 million from victims so far this year.<\/p>\n

In late September, ShinyHunters hacked the FBI<\/a> recruitment website fbijobs.gov<\/strong> and taunted the agency by threatening to publish the stolen files, which reportedly included medical and psychological records, Social Security numbers and home addresses, and information about each employee\u2019s unit and specialization.<\/p>\n

The FBI jobs site hack has prompted the agency to move with uncommon speed to arrest, detain and question people who had any communications with Rey or other ShinyHunters suspects. Reuters<\/strong> reported<\/a> on October 3 that Rey had been detained by Jordanian authorities and was cooperating with the FBI.<\/p>\n

Rey was able to assume control over the hacking group because one of its alleged senior members had just been nabbed. On the evening of September 15, 2026, authorities in the Netherlands arrested<\/a> convicted hacker and ShinyHunters suspect Pepijn van der Stap<\/strong>. Dutch police reportedly used flash-bang grenades in an effort to stun and apprehend Van der Stap as he was logged in to various online accounts.<\/p>\n

According to a source close to the investigation, the authorities arrested Van der Stap while he was using his Signal instant messaging account, which allowed them to read recent communications with frequent contacts \u2014 including ransomware negotiators based in Canada and the United States.<\/p>\n

Multiple sources with knowledge of the matter told KrebsOnSecurity that Van der Stap\u2019s messages were the key to unraveling a murder-for-hire plot that emerged immediately following his arrest. The Dutch news outlet RTL<\/strong> reported last month the two murders were allegedly to be committed abroad, and that there are indications Van der Stap gave the order for the attacks (there is no indication those orders were ever carried out).<\/p>\n

On October 9, KrebsOnSecurity broke the news<\/a> that the FBI arrested a 54-year-old Canadian cybersecurity executive named Edward Dubrovsky <\/strong>in connection with the ShinyHunters investigation. Dubrovsky, who recently published a book<\/a> on handling cyber extortion that recommended always engaging with the hackers, was charged with threatening to disclose stolen or hacked data and interfering with interstate commerce through extortion, according to court records<\/a>. Politico<\/strong> reports<\/a> prosecutors have asked that Dubrovsky remain in custody pending trial, and that records related to his case remain under seal.<\/p>\n

A source close to the investigation told KrebsOnSecurity that Van der Stap\u2019s Signal messages showed he had frequent conversations with Mr. Dubrovsky and with at least one executive at a large U.S.-based consulting firm, and that these executives often knew the details about new ShinyHunters victims before the victims themselves had even learned of the breach.<\/p>\n

That source shared another potentially explosive finding by federal investigators: the Dutch hacker\u2019s chats showed Mr. Dubrovsky knew ShinyHunters had stolen highly sensitive data from FBI servers, and that he never informed the bureau of the data breach prior to ShinyHunters threatening on Twitter\/X to publish the agency\u2019s deeply personal personnel files.<\/p>\n

SHINYWIRE<\/h2>\n

KrebsOnSecurity has learned from two sources close to the ShinyHunters probe that FBI investigators believe at least one executive at a U.S.-based consulting firm played an active role in operating the now-defunct ShinyHunters victim extortion website \u201cshinywire[.]com<\/strong>.\u201d KrebsOnSecurity is not naming the U.S. company or the suspected executive(s) for now because they have not yet been charged with a crime, but it is a prestigious firm with more than 1,000 associates.<\/p>\n

\"\"<\/p>\n

A section of the homepage for the now-defunct Shinywire website.<\/p>\n<\/div>\n

The Shinywire website was active from approximately May 3, 2026 until October 16 and had entries for nearly 100 organizations hacked by ShinyHunters. Each entry urged victims to engage with the cybercrime group and discuss terms for payment. The pages also included samples of stolen files and promised those files would be published online if the victim ignored their demands.<\/p>\n

The following screenshot shows a cached portion<\/a> of the Shinywire extortion page for Intuitive Surgical<\/strong>, an American medical technology company that was breached in March 2026<\/a> after an employee fell for a targeted phishing email.<\/p>\n

\"\"<\/p>\n

The Shinywire website, as indexed by urlscan.io. This listing is an extortion demand targeting Intuitive Surgical, an American medical technology company breached in March 2026 by a targeted phishing email attack that compromised an employee\u2019s credentials.<\/p>\n<\/div>\n

Victim organizations that refused to engage or negotiate after seven days would find all of their stolen data published on the ShinyHunters victim shaming blog (a website that is only reachable via the anonymity network Tor<\/a>).<\/p>\n

In a story published October 15, The Globe and Mail<\/strong> wrote<\/a> that a few months before Edward Dubrovsky was arrested by the FBI, the Canadian cybersecurity executive alleged in court documents he had become collateral damage in a campaign by a former business partner to \u201cdestroy\u201d another industry executive.<\/p>\n

The story noted that Dubrovsky filed the lawsuit in Ontario this year against Daniel Tobok<\/strong>, the former chief executive of Cypfer<\/strong>, a cybersecurity firm founded in Toronto with offices in the U.S., Britain, the Netherlands, the United Arab Emirates, and Mexico. The two first became business partners in 2017 and later developed Cypfer together, where Mr. Dubrovsky was a managing partner and chief operating officer. But by 2024, the two had a falling out, with Dubrovsky accusing Tobok of gradually excluding him from business matters and making \u201cincreasingly capricious business decisions.\u201d<\/p>\n

Mr. Tobok reportedly denied the allegations and filed a counterclaim, accusing Mr. Dubrovsky of accessing confidential information and unfairly competing with Cypfer through work at another firm called CyberSteward Inc<\/strong>. He also said Mr. Dubrovsky has misrepresented himself as a Cypfer founder, and is not a shareholder.<\/span><\/p>\n

GHOSTBYTE<\/h2>\n

According to interviews with several former colleagues of Mr. Tobok, as far back as eight years ago he was known to ransomware purveyors by a particular nickname: Ghostbyte<\/strong>. In 2018, a Canadian company was hacked by Dharma<\/a>, a prolific Russian-language ransomware affiliate program that first surfaced in 2016. The victim company told the Dharma ransomware representative they were leaning toward paying because some of the files were unrecoverable after being locked, but that they needed a better guarantee that Dharma would keep their word if paid.<\/p>\n

A redacted copy of the Dharma rep\u2019s reply is pictured below, and it shows the ransomware group urged the victim to contact a person at a Canadian IT firm that helps companies seeking such guarantees. The Dharma rep recommended the victim contact the email address ghostbyte@tutanota.com<\/strong>.<\/p>\n

\u201cIf you want guarantees, you can write to the IT company,\u201d the Dharma reply advised. \u201cTake the phone and negotiate with them. This IT company often solves such problems in Canada. You can contact them and sign a contract for services. You\u2019ll still have to pay.\u201d<\/p>\n

\"\"<\/p>\n

An email reply from the Dharma ransomware group to a victim, recommending they contact an email address that is connected to Mr. Tobok.<\/p>\n<\/div>\n

It\u2019s unclear if Mr. Tobok ever used that Ghostbyte address offered by the Dharma representative, and he has not responded to multiple requests for comment. However, the breach tracking service Constella Intelligence<\/a> finds an email address Mr. Tobok has frequently used \u2014 dtobok@me.com<\/strong> \u2014 is associated with two online accounts where the chosen username was \u201cghostbyte,\u201d including a Snapchat account.<\/p>\n

Incidentally, Constella also finds the Dharma rep\u2019s email address luckygoodlucky@tuta.io<\/strong>\u00a0is associated with a cryptocurrency address<\/a> that processed 38 transactions totaling 43 bitcoin, ~$3.5 million at today\u2019s value (the most recent transaction for this wallet is dated February 2019).<\/p>\n

In a statement shared on October 14, Cypfer said the company\u2019s business does not include making or facilitating ransomware payments, and that Cypfer learned of Dubrovsky\u2019s arrest when the news first broke in the media.<\/p>\n

\u201cWe had no prior knowledge of Mr. Dubrovsky\u2019s arrest,\u201d a spokesperson told KrebsOnSecurity via email. \u201cCYPFER<\/span> has not received any outreach from law enforcement and, to our knowledge, is not the target of any law enforcement investigation.\u201d<\/p>\n

The statement said CyberSteward and Cypfer are separate companies with no officers, directors or employees in common, and that Cypfer was recently acquired by the Apros Group<\/strong>, a holding company led by Jason Hogg<\/a>, a former FBI special agent and former CEO of Aon Cyber Solutions Group<\/strong>. In 2020, Aon aquired Cytelligence<\/strong>, a security consulting firm where Mr. Tobok was founder and CEO and Mr. Dubrovsky was a managing partner.<\/p>\n

CONFLICTING INTERESTS<\/h2>\n

It is not illegal in the United States to pay hackers for an encryption key to unlock servers infected with ransomware, or in exchange for a promise to delete any stolen files and refrain from publishing them online. While victim organizations can land in legal hot water if they pay a ransom to a group that is sanctioned by the U.S. Treasury Department, ShinyHunters is not among the ransomware groups currently sanctioned by the United States or by any other government.<\/p>\n

Experts say ransomware victims are typically directed by their insurance provider to work with a specific incident response firm. But not all cyber forensics and breach response companies will agree to facilitate payments to ransomware groups on behalf of their clients. As a result, once victim firms make a decision to pay, the firms that eschew rewarding extortionists are invariably replaced by companies that have no such qualms.<\/p>\n

In December 2024, ShinyHunters began extorting the education technology company PowerSchool<\/strong>, stealing private information on 62 million students and 9.5 million teachers in the U.S. and Canada. PowerSchool reportedly paid a $2.85 million ransom demand, and a \u201cfrequently asked questions\u201d statement<\/a> (PDF) about the breach says PowerSchool was assisted in that effort by CyberSteward (ShinyHunters affiliate Matthew Lane<\/strong>, 20, of Sterling, Mass., was sentenced in November 2025<\/a> to four years in prison for his admitted role in the PowerSchool hack).<\/p>\n

But that ransom payment did not stop future extortion attempts using the same stolen data. By May 2025, individual school districts were reportedly<\/a> receiving separate ransom demands using samples of the same stolen files. While nobody has alleged ShinyHunters was behind the second wave of extortion against PowerSchool users, the incident drives home the reality that there is no technical way to verify the threat actors have deleted the stolen data as promised, or prevent others from abusing the same records.<\/p>\n

A number of leading cyber incident response firms, including Coveware<\/strong> and Unit 221B<\/strong>, have consistently warned victims against paying ShinyHunters<\/a>, noting that \u201cdestroyed\u201d victim data is often kept, resold or used to extort the company\u2019s clients directly later on.<\/p>\n

The FBI echoed those sentiments in an alert<\/a> on May 15, 2026 advising victims against paying the ShinyHunters group. Meanwhile, ShinyHunters members have been harassing and threatening employees at Coveware and Unit 221B for offering this advice.<\/p>\n

The following screenshots show just how annoyed the ShinyHunters leaders were with Coveware\u2019s relentless advice against paying the group. The first image is from a conversation on May 6, 2026 that took place between the group\u2019s main account on Telegram and a co-conspirator. In that chat, snippets of which were shared with KrebsOnSecurity by a trusted source, ShinyHunters complained that Coveware was harming the group\u2019s payment rates.<\/p>\n

\"\"<\/p>\n

The operator of the ShinyHunters account on Telegram speaking privately with a co-conspirator and complaining that Coveware was harming their business.<\/p>\n<\/div>\n

\u201cGo on my website, majority of those companies would\u2019ve paid if it weren\u2019t for Coveware giving them misinformation,\u201d the ShinyHunters account wrote. \u201cSomeone (100% Coveware) is going out of their way to make sure i am not paid.\u201d<\/p>\n

In another conversation on April 11, 2026, the ShinyHunters Telegram account privately said they were trying to \u201celiminate the problem,\u201d which they said was Coveware. Coveware declined to comment for this story.<\/p>\n

\u201cI\u2019m sure the company will pay but in this specific case I am aware of Coveware and their involvement, and I\u2019ve probably been not getting a lot of other negotiations mostly likely because Coveware keeps getting involved,\u201d the ShinyHunters account bemoaned.<\/p>\n

\"\"<\/p>\n

The operator of the ShinyHunters account on Telegram telling a co-conspirator they were \u201ctrying to eliminate the problem,\u201d which they identified as Coveware advising victims not to pay the cybercrime group.<\/p>\n<\/div>\n

Mark Camillo<\/strong> is chief executive at CyberAcuView<\/strong>, an industry group founded in 2021 by a consortium of major cyber insurance carriers. Camillo said some firms charge a flat retainer fee, while those that specialize in helping companies negotiate a ransom payment tend to charge a percentage of the total ransom amount paid.<\/p>\n

That latter dynamic, he said, is an inherent conflict of interest, as the negotiator has every incentive to make things more favorable to the attackers because they are financially incentivized to negotiate and pay out, and to not negotiate down on the price.<\/p>\n

\u201cIt has come to the industry\u2019s attention that many of the ransomware payers charge a percentage of the final payment which may or may not be disclosed,\u201d Camillo said. \u201cThis makes no sense if they are also the negotiator. There needs to be more transparency in the process as no one in the ecosystem should be profiting purely on the size of the ransomware transaction or payment itself.\u201d<\/p>\n

Camillo said the firms doing this work would argue the fees are needed because there may be unexpectedly higher costs to secure larger quantities of cryptocurrency or more risk carrying the float, and because cryptocurrency exchanges may charge higher fees for high risk transactions.<\/p>\n

\u201cThere definitely needs to be more visibility around the transaction and clarity on the increasing value of the crypto and the exchange\u2019s percent in the transaction to get to the bottom of this and remove any misaligned incentives,\u201d he said.<\/p>\n

In recent months, the U.S. Department of Justice<\/strong> has prosecuted a number of ransomware negotiators alleged to have conspired with cybercriminals to defraud their clients. On October 7, the DOJ charged<\/a> MonsterCloud CEO Zohar Pinhasi<\/strong>, 50, with wire fraud and conspiracy for allegedly charging customers to remediate ransomware attacks without paying the hackers. According to charging documents, Pinhasi secretly went behind his customers\u2019 backs and paid hackers anyway, paying ransomware groups $8 million while charging customers $19 million.<\/p>\n

In July, Angelo Martino<\/strong>, a 41-year-old ransomware negotiator from Land O\u2019Lakes, Florida, was sentenced to 70 months in prison<\/a> for conspiring with the Blackcat\/ALPHV ransomware group to extort multiple victims. According to the DOJ, Martino was paid by BlackCat attackers to provide confidential information about the negotiating position and strategy of his employer\u2019s clients and enable the ransomware actors to maximize the ransoms paid by the victims.<\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. federal investigators pursuing theShinyHuntershacking group that recently stole highly sensitive data from theFBIhave identified executives at two different ransomware negotiation firms who maintained unusually close relations with the extortion group, KrebsOnSecurity has learned. Sources close to the investigation say one of the executives in the United States even helped ShinyHunters operate a website that pressured victims into paying a ransom.Hackers aligned with ShinyHunters have claim<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[10642],"tags":[],"class_list":["post-26315","post","type-post","status-publish","format-standard","hentry","category-krebs"],"_links":{"self":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/26315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=26315"}],"version-history":[{"count":0,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/26315\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=26315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=26315"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=26315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}