Iranian man pleads guilty to ransomware attacks that targeted Baltimore, other US cities
An Iranian national pleaded guilty for his role in an international ransomware scheme that targeted the computer networks of Baltimore and other U.S. cities, disrupting services and causing tens of millions of dollars in losses, federal authorities said.
Sina Gholinejad, 37, pleaded guilty May 27 to one count of computer fraud and abuse and one count of conspiracy to commit wire fraud, the Justice Department said in a news release. Gholinejad was arrested Jan. 10 at Raleigh-Durham International Airport in North Carolina, federal court records show.
He faces a maximum penalty of 30 years in prison and is set to be sentenced in August, the Justice Department announced.
Gholinejad and unidentified co-conspirators were behind a string of ransomware attacks between January 2019 and March 2024, according to an April 2024 indictment unsealed on May 27. The Justice Department said Gholinejad and his co-conspirators encrypted files on the targeted networks with the Robbinhood ransomware variant to extort ransom payments.
The conspirators compromised the computer networks of health care organizations, corporations and other entities across the United States, according to the Justice Department. The cyberattacks also targeted several U.S. cities, including Baltimore in the high-profile 2019 ransomware attack, and caused "significant disruptions" to essential city services, federal authorities said.
The Justice Department added that the conspirators "used the damage they caused these cities to threaten subsequent victims."
Though court documents did not allege a state-backed connection in this case, federal authorities have warned in recent years of Iranian government hacking groups targeting U.S. critical infrastructure and private-sector entities. Federal agencies also have issued numerous advisories for cyberattacks by foreign groups, including the Islamic Revolutionary Guard Corps.
In November 2023, an Iranian-linked cybergroup, Cyber Av3ngers, hacked into the water authority infrastructure in Aliquippa, Pennsylvania. The group took partial control of a system that regulates water pressure, and one that includes technology manufactured in Israel. At the time, federal authorities said the group was looking to disrupt Israeli-made technology in the United States.
Conspirators used hacking tools to gain access to computer networks
Federal authorities said Gholinejad and his co-conspirators gained unauthorized access to computer networks with hacking tools. They copied, transmitted and stored information and files from the infected victim networks to virtual private servers controlled by the conspirators, according to the indictment.
The conspirators also deployed Robbinhood ransomware on targeted computers to encrypt files and make them inaccessible to the victims, the indictment states. They then extorted victims by requiring the payment of bitcoin in exchange for the private key used to decrypt the victims' computer files.
The Justice Department said the conspirators attempted to launder the ransom payments through cryptocurrency mixing services and by moving assets between different types of cryptocurrencies. According to the indictment, the conspirators concealed their identities and activities through various methods, such as the use of virtual private networks and servers they controlled.
The attack on Baltimore in 2019 cost the city more than $19 million from damage to computer networks and disruptions to city services that lasted many months, including the processing of property taxes, water bills, parking citations and other revenue-generating functions, the Justice Department said.
Additional victims include computer networks in the cities of Gresham, Oregon; Yonkers, New York; and Greenville, North Carolina, along with the Glenn-Colusa Irrigation District in California and the nonprofit Berkshire Farm Center and Services for Youth, based in New York, according to the indictment.
“Gholinejad and his co-conspirators − all of whom were overseas − caused tens of millions of dollars in losses and disrupted essential public services by deploying the Robbinhood ransomware against U.S. cities, health care organizations, and businesses,” Matthew R. Galeotti, head of the Justice Department’s Criminal Division, said in a statement.
"The ransomware attack against the City of Baltimore forced the city to take hundreds of computers offline and prevented the city from performing basic functions for months."
Contributing: Claire Thornton, Paste BN; Reuters