Ransomware Gang Ties to Russian Government Exposed

US prosecutors say the Karakurt ransomware gang, led by former leaders of the Akira and Conti gangs, relied on access to Russian government databases and law enforcement connections to intimidate its victims.

A US court has sentenced Deniss Zolotarjovs, a Latvian hacker, to more than eight years in prison for his role in ransomware attacks carried out by the Karakurt gang. The Justice Department accused Zolotarjovs of working for the notorious Russian ransomware gang, which was led by former leaders of the Akira and Conti gangs. These gangs were sanctioned by the US Treasury for their alleged links to Russian intelligence.

According to the DOJ, the Karakurt gang targeted US government entities with attacks that disrupted 911 emergency dispatch systems, and also stole children's health information. Zolotarjovs was responsible for 'escalating pressure' on victims who resisted the gang's ransom demands.

The ties between the Karakurt gang and the Russian government are further underscored by the fact that the gang 'fueled corruption' in the Russian government. The gang's leaders were able to avoid paying taxes to the state, and they regularly paid bribes to officials who exempted members from compulsory Russian military service.

The Karakurt gang targeted more than 54 companies, with at least $15 million in ransoms paid by the victims. However, the gang does not appear to be an active ransomware gang, and some operations change owners and names to evade sanctions.

Zolotarjovs was arrested in the country of Georgia in 2023 and extradited to the United States in August 2024. He later pleaded guilty to his crimes.

The sentencing of Zolotarjovs highlights the links between cybercriminals and the Russian state. US officials have said in recent years that Russia has become a 'safe haven' for cybercriminals, citing the threat from ransomware as one of the top national security challenges facing the United States.

The Karakurt gang's ties to the Russian government are a concerning development, and it underscores the need for greater cooperation between governments to combat cybercrime.

The Russian Foreign Ministry did not respond to TechCrunch's request for comment.

Related Developments

• The US Treasury has sanctioned several Russian individuals and entities for their alleged links to the Akira and Conti gangs.

• The US government has imposed sanctions on several Russian individuals and entities for their alleged involvement in cybercrime.

• The Russian government has been accused of shielding cybercriminals from Western law enforcement, including by refusing to extradite its citizens accused of damaging hacks.