US charges developer in LockBit group, paid in crypto

The US Department of Justice has indicted Rostislav Panev, a dual Russian and Israeli national, for his alleged involvement in the LockBit ransomware group.

Put, 51 years old, is accused to work as a developer for the group, earning over $230,000 in cryptocurrency for his contributions. Arrested in Israel in August, Panev is currently awaiting extradition to the United States to face charges.

LockBit is a notorious ransomware group known to target known for targeting entities around the world, including large corporations like Boeing, financial institutions such as the Industrial and Commercial Bank of China, and government departments like Royal Mail in the United Kingdom, according to at Bloomberg.

Ransomware attacks typically involve encrypting victims’ data and demanding cryptocurrency payments to restore access.

Telegram and crypto connections

Panev allegedly communicated with LockBit members using the encrypted messaging app Telegramwidely appreciated in cybercrime circles for its privacy features. Telegram is often used in the world of cybercrime for its privacy features. According to his lawyer, Sharon Nahari, Panev was a software developer who was unaware of the malicious intent behind the tools he created.

Panev allegedly cooperated with law enforcement, providing information about his activities.

Authorities say his work included developing malware to disable antivirus systems, deploying ransomware, and printing ransom notes on affected networks.

Payments to Panev were allegedly laundered through cryptocurrency mixing services, a common tactic in ransomware operations to obscure transaction trails.

Since its emergence in 2019, LockBit has caused billions of dollars in damage worldwide. The group extorted at least $500 million from more than 2,500 victims in 120 countries. Its operations rely on developers like Panev to create malware and affiliates to execute attacks.

In February, US and UK authorities disrupted LockBit’s infrastructure, seizing websites, servers and decryption keys, which significantly hampered the group’s activities. Despite these efforts, LockBit remains active, with Panev’s arrest marking the latest step in ongoing legal proceedings.

The alleged head of LockBit, Dmitry Khoroshev, remains at large. The US government has offered a $10 million reward for information leading to his capture.