Key facts
- Angelo Martino, a former ransomware negotiator, was sentenced to 70 months in prison.
- He colluded with the BlackCat ransomware group to extort DigitalMint's clients.
- Martino provided confidential client information, including insurance limits and negotiation strategies.
- He received cryptocurrency proceeds in exchange for this information.
- Martino and co-conspirators also acted as BlackCat affiliates, extorting $1.2 million from one victim.
- DigitalMint stated it was an unknowing victim and cooperated with the investigation.
Angelo Martino, a former ransomware negotiator for DigitalMint, has been sentenced to 70 months in prison for betraying his clients and colluding with the BlackCat ransomware group. Martino's role was to negotiate with cybercriminals on behalf of DigitalMint's clients, but instead, he provided them with confidential information to maximize ransom demands in exchange for a share of the payments.
The US government stated that Martino's actions led to five victims paying over $75 million, with millions likely inflated due to the information he provided. Martino pleaded guilty and sought a 24-month sentence, highlighting his cooperation that led to the indictment and conviction of two co-defendants, Kevin Martin and Ryan Goldberg, who were also ransomware negotiators and received four-year sentences.
In addition to working against his clients, Martino, Martin, and Goldberg also acted as BlackCat affiliates, deploying the ransomware themselves and successfully extorting $1.2 million from a medical device company. Other victims did not pay but suffered losses from the attacks. Martino received millions in cryptocurrency, using much of it to purchase assets like houses, a boat, and vehicles before the FBI seized some of his funds.
Victims in the scheme included companies in the financial services, health, hospitality, nonprofit, and retail industries. The conspiracy impacted their ability to provide services to customers. DigitalMint stated it was an unknowing victim of Martino's actions, having fired the employees involved and fully cooperating with federal authorities. The company noted that Martino intentionally hid his conduct and evaded internal safeguards.