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Malware Developer Who Used Spam Botnet To Pay For College Gets No Prison Time (bleepingcomputer.com)

An anonymous reader writes: The operator of a 77,000-strong spam botnet was sentenced to two years probation and no prison time after admitting his crime and completely reforming his life. The former botnet operator is now working for a cybersecurity company, and admitted his actions as soon as the FBI knocked on his door back in 2013. The botnet operator, a 29-year-old from Santa Clara, California, says he was tricked by fellow co-schemers who told him they were not doing anything wrong by infecting computers with malware because they were not accessing private information such as banking or financial records. Furthermore, the botnet operator escaped prison time because he used all the money he earned in getting a college degree at Cal Poly instead of using it on a lavish lifestyle or drugs. This case is similar to the one that MalwareTech (aka Marcus Hutchins) now faces in the U.S. for his role in developing the Kronos trojan, but also after turning his life around and working as a cybersecurity researcher for years.

57 comments

  1. So, basically he used the money to set himself up. by Chas · · Score: 1

    But hey, it's only a valuable college degree that helped him get a cybersecurity job.
    Not like he's gonna live high on the hog off a job like that. He might as well be working at a gas station!

    --


    Chas - The one, the only.
    THANK GOD!!!
  2. America, F-yeah! by sinij · · Score: 3, Insightful

    You have to turn to crime to just be able to afford tuition.

    1. Re:America, F-yeah! by Anonymous Coward · · Score: 0

      You have to turn to crime to just be able to afford tuition.

      Or porno.

      But this is a valuable lesson: say you didn't think you were doing anything illegal, say you're sorry, and pay tuition.

      I think to pay my student loans, I'm gonna sell meth and make child porn. And if caught, I'll say, "I did it to pay my student loans and I'm sorry."

    2. Re:America, F-yeah! by Anonymous Coward · · Score: 1

      You have to turn to crime to just be able to afford tuition.

      Well, that's what happens when government starts giving away shackles, errr, student loans.

      The demand for college goes through the roof, and not having a degree is seen as a sign of failure, further fueling the demand.

      Supply and demand - demand expands, and the cost of college skyrockets.

      It's a classic bubble.

    3. Re:America, F-yeah! by gnick · · Score: 2

      I think to pay my student loans, I'm gonna sell meth...

      There was a high school chem teacher in NM that tried that to pay for his chemo treatments. It didn't end well for him but made a helluva story.

      --
      He's getting rather old, but he's a good mouse.
    4. Re: America, F-yeah! by Anonymous Coward · · Score: 0

      It's mother fucking science, BITCH!!

      Jesse

    5. Re:America, F-yeah! by arth1 · · Score: 1

      You have to turn to crime to just be able to afford tuition.

      Or porno.

      Nah, porno can allegedly be found for free these days.

    6. Re:America, F-yeah! by Anonymous Coward · · Score: 0

      You have to turn to crime to just be able to afford tuition.

      Or porno.

      Come on, porn is not that expensive.

  3. Unproven no? by Luthair · · Score: 3, Insightful

    Isn't it still entirely unproven that Hutchins had anything to do with writing kronos? Last I heard the FBI has accused him of it, but he hadn't admitted guilt or lost a trial.

    1. Re:Unproven no? by Anonymous Coward · · Score: 1

      But Hutchins messed up already deployed NSA malware, so surely he must be convicted of something!

    2. Re:Unproven no? by Anonymous Coward · · Score: 0

      Marcus it's a notorious blackhat on the booter/DDoS-For-Hire scene, Kronos malware it's just the thing he f*cked up covering his tracks but Krebs did a really in-depth investigation on his "achivements" so you shouldn't put him on a pedestal: https://krebsonsecurity.com/2017/09/who-is-marcus-hutchins/

    3. Re:Unproven no? by Luthair · · Score: 1

      Put him on a pedestal? I merely pointed out that claiming he was the same as Marcus Hutchins is incorrect as he has not admitted it nor has the FBI shown evidence to prove it (since the trial hasn't started).

  4. Sounds like a case of wilful ignorance by El+Cubano · · Score: 4, Insightful

    ... says he was tricked by fellow co-schemers who told him they were not doing anything wrong by infecting computers with malware because they were not accessing private information such as banking or financial records.

    I might have believed that claim 30 or so years ago. However, anyone having anything at all even remotely to do with technology would have to be living under a rock in order to not understand that infecting computers that you do not own is considered a serious crime.

    That would be like claiming that you thought it was OK to drive yourself home after 6 drinks because you were careful not hit any parked cars or pedestrians and you made it home.

    I would call that wilful ignorance.

    I was originally going to say that this whole thing sounds like a case of #4 from "The Six Dumbest Ideas in Computer Security". Then I reconsidered because it seemed like he had "good" intentions. However, I cannot imagine who would hire this guy after the claim that he made that he did not know what he was doing was wrong. Definitely sounds like a case of #4.

    1. Re:Sounds like a case of wilful ignorance by Anonymous Coward · · Score: 0

      Actually, if you read the text of the Computer Fraud and Abuse Act it's pretty easy to come to the conclusion that if you don't mess with banks, financial records, commit fraud, or damage data, you wouldn't be subject to federal charges. Of course in the real world they'll convict you anyway because it all comes down to human interpretation by government officials.

    2. Re:Sounds like a case of wilful ignorance by omnichad · · Score: 2

      Anyone can be charged with violating some law. Even if it's just a scare tactic to get a plea and there's no chance of a conviction.

    3. Re:Sounds like a case of wilful ignorance by pak9rabid · · Score: 1

      I might have believed that claim 30 or so years ago

      Well, seeing as law enforcement and the judicial system still operate like it's 30 years ago, it makes sense.

    4. Re:Sounds like a case of wilful ignorance by Anonymous Coward · · Score: 0

      I might have believed that claim 30 or so years ago. However, anyone having anything at all even remotely to do with technology would have to be living under a rock in order to not understand that infecting computers that you do not own is considered a serious crime.

      *COUGH*windowsten*COUGH *

  5. america fake news by Anonymous Coward · · Score: 0

    #russia

  6. So... crime's OK by Baron_Yam · · Score: 3, Interesting

    Crime is OK if you use the proceeds for education. This seems like a bad precedent to set, especially with computer crime. It's not like we don't already have bunches of script kiddies imagining they're fighting a just cause while committing computer crimes.

    So many talented but ethically-challenged kids out there can look at this and say, "Well, if I don't get caught I'm rich and if I do I get probation. Yay, free tuition!"

    1. Re:So... crime's OK by azcoyote · · Score: 3, Funny

      I know! He should have taken up pole dancing to work himself through college, like a respectable person.

      --
      Incipiamus, fratres, servire Domino Deo, quia hucusque vix vel parum in nullo profecimus.
    2. Re:So... crime's OK by Baron_Yam · · Score: 2

      My local university apparently has a lot of prostitutes, but that's mainly an option for reasonably attractive straight girls and gay men... or those willing to fake it, I suppose.

      As a straight male, I did manual labour from age 16 to save up for university. Maybe crime would have been a better option, but unfortunately I was raised with ethics and morals.

    3. Re:So... crime's OK by Anonymous Coward · · Score: 0

      Crime is OK if you use the proceeds for education. [...]

      That's 100% true; crime DOES pay: http://www.courts.wa.gov/appellate_trial_courts/SupremeCourt/?fa=supremecourt.McCleary_Education

    4. Re:So... crime's OK by dissy · · Score: 2

      Crime is OK if you use the proceeds for education. This seems like a bad precedent to set, especially with computer crime. It's not like we don't already have bunches of script kiddies imagining they're fighting a just cause while committing computer crimes.

      So many talented but ethically-challenged kids out there can look at this and say, "Well, if I don't get caught I'm rich and if I do I get probation. Yay, free tuition!"

      While I can certainly agree that this would be a bad thing in the hands of people who are always trying to game any and all systems for their own benefit, I'm actually leaning the other way.

      Reading the summary the first thought that went through my head was "What the hell, our justice system is actually trying to find justice and not just revenge as is almost always the case?!"

      The very fact our revenge system is so expected to dole out revenge and ignore justice, such that people actively see justice as a negative thing simply because it is so far from the norm, is a very poor reflection on us as a nation.

      Reform is something everyone should absolutely believe in! Or at least the possibility of it.
      As I said, I do agree completely that reform shouldn't be determined by a checklist or set of rules that never changes, ie being encoded into law, for pretty much the same reasons you gave.
      But taken on a case-by-case basis, and with the proper amount of time and resources to do it correctly, it is absolutely something our justice system needs to return back to.

      Not believing in reform, when taken to its ultimate conclusion, is the worst possible situation for all of us.
      After all if you firmly believe reform isn't possible, then ultimately there is no point what so ever in assigning prison terms anything under "life". Why let anyone out if by your own definition they can never reform and will never stop doing what they did to end up there?

      Continuing to the extreme, can you name one person who has never in their life made a mistake? No, such a person doesn't exist. So why not imprison everyone ahead of time?
      After all the logic is sound: Everyone makes mistakes, one mistake is all that is needed for punishment, and there is no possibility ever for anyone to learn from that mistake and not make it again in the future.
      That certainly isn't a world I want to live in.

      How many stories have we all heard about a gifted child, as in mid-teenage or less child, with amazing skills yet the usual shitty judgement that children have who end up in prison for multiple decades? It is a waste of talent, a waste of money, a waste of any possible contributing to our society, and ultimately a waste of a life.
      Throwing away a person like that Should be reserved for people who really can't provide any benefit to society or can't stop causing harm to others. It shouldn't be for people who make one mistake.

      One of our biggest problems is allocating the resources needed to tell those two types of people apart, specifically in that we simply do not do so.
      There is a twisted kind of logic behind erring on the side of caution and just assuming the same answer for everyone, but the fact is we shouldn't be putting the justice system in the position to need to assume.

      If you're thinking of asking me what we should be doing as some kind of universal answer, I have nothing to give. But this type of thing is still refreshing knowing at least a few people in our justice system haven't totally and completely given up hope on everyone as a blanket position.

    5. Re:So... crime's OK by thegarbz · · Score: 1

      This seems like a bad precedent to set

      No this seems like a natural consequence. The bad precedent was set when education became unaffordable in the first place.

    6. Re:So... crime's OK by Baron_Yam · · Score: 1

      >The very fact our revenge system is so expected to dole out revenge and ignore justice, such that people actively see justice as a negative thing simply because it is so far from the norm, is a very poor reflection on us as a nation.

      Justice is historically synonymous with 'getting your just desserts' or similar idea. It's all about revenge.

      Fundamentally though, the purpose of the legal system is to ensure the rules are followed to the benefit of the society. Locking someone up punitively doesn't really have a net benefit. You lock someone up to prevent recidivism, you lock them up to scare the next person into thinking twice (only works against calculated crimes, not those based on issues with impulse control or extreme circumstances), you lock them up to have control while you attempt rehabilitation. Maybe you 'lock them up' - in the sense of parole requirements - to get some kind of restitution out of them.

      Punishment for punishment's sake just gives a temporary emotional boost to the victims or their family/friends/associates, and that's not really the kind of thing we should encourage.

  7. $50,000 by 110010001000 · · Score: 0

    Does he now earn $50,000 a year in IT in Silicon Valley? I know that guy.

    1. Re:$50,000 by gnick · · Score: 1

      50k in Silicon Valley will get you a brand new Maytag box in one of the premium alleys. No recycle-bin scrounging for this guy's palace! And prime real-estate next to a restaurant dumpster.

      --
      He's getting rather old, but he's a good mouse.
    2. Re:$50,000 by Anonymous Coward · · Score: 0

      50k in Silicon Valley will get you a brand new Maytag box in one of the premium alleys. No recycle-bin scrounging for this guy's palace! And prime real-estate next to a restaurant dumpster.

      Someone should develop an app for box sharing and dumpster sharing! I'll call it 'AirBox!

      I can go public - and keep most of the stock, the public will buy it up thinking the company is a Unicorn, and I'll end up billionaire!!

      And then dorks all over the World will call me an "innovative disrupting GENIUS", flame anyone on Slashdot who says otherwise and I can once a week say something outrageous - "I'm gonna build a hyperloop on Mars." - to stay in the news.

  8. Companies to blame by Anonymous Coward · · Score: 0

    As long as companies lay emphasis on degrees, they will be out of reach of common people. Companies should hire based on some aptitude tests which conveys/suggests the persons ability to pickup technology and work. Of course he will not become Einstein, but for majority of works that is sufficient, and he lives a debt-free life.

  9. time served by fibonacci8 · · Score: 4, Funny

    He got a degree from Cal Poly, the judge decided he'd suffered enough already.

    --
    Inheritance is the sincerest form of nepotism.
  10. Prison is stupid and cruel for things like this by fustakrakich · · Score: 2

    Just garnish some of his earnings

    --
    “He’s not deformed, he’s just drunk!”
  11. Second chances are good but well... by CustomSolvers2 · · Score: 1

    He voluntarily chooses the easiest path by provoking a damage to others, out of the huge amount of other possibilities. He spends all the money egoistically although in something which a priori seems not that bad. As a result of all that, he gets a career, an education and even some fame within the field. The rest of the society gets spam (at least), further promotion of crap(py attitudes, knowledge, outputs, etc.) within the software development industry, the impression that you can get away with things like that and even somehow demotivating people always doing what is right. This doesn't sound fair to me.

    Sending him to jail would have perhaps been a bit too excessive; but an important payment or some kind of punishment in the form of restricting his activity might have been quite fair. I am all for second chances and supporting people wanting to improve, but everyone should be responsible for any action damaging others. Nothing even close to an eye for an eye, just some reasonable compensation.

    --
    Custom Solvers 2.0 = Alvaro Carballo Garcia = varocarbas.
    1. Re:Second chances are good but well... by mwvdlee · · Score: 1

      He's been let off way too easy. 2 years probation? So after 2 years he can freely start stealing computer resources again?
      How about docking all his pay until he's paid for his tuition, all cost to the legal system and additional damages?
      Better yet; send him on a no-expenses-paid apology-tour to all 77.000 individuals he stole electricity, bandwidth and CPU resources from?

      --
      Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
    2. Re:Second chances are good but well... by CustomSolvers2 · · Score: 1

      He's been let off way too easy. 2 years probation?

      I am not too familiar with the US penal system (neither with the one in my country as far as I haven't ever been in that situation), but this sounds as a very small punishment for someone being charge with prison time. Correct me if I am wrong, but this will not limit his activity at all and, as far as he seems to already have a solid career, is very unlikely to have a negative impact on his job/client search. This seems almost just publicity and you know what they say about publicity and businesses.

      So after 2 years he can freely start stealing computer resources again?

      For me, it is more a matter of bothering, stealing/dealing with personal information and, basically, getting an income from kind-of-damaging others; to not mention the tiny issue of going against the law. Additionally, I think that this is particularly censurable in a field like software development and a country like the US where you have lots of very lucrative, not-bothering-anyone and legal alternatives. If you perform some not too good activity because of need, it might be kind of understandable; but in this case, it was clearly a voluntary and fully conscious decision. Do you want to take the easy/dangerous way? OK, but don't complain later about the consequences.

      How about docking all his pay until he's paid for his tuition...

      I don't think that the whole last part of your post has anything to do with the evident intention in mine: all up for second chances + reasonable punishment.

      --
      Custom Solvers 2.0 = Alvaro Carballo Garcia = varocarbas.
    3. Re:Second chances are good but well... by Anonymous Coward · · Score: 0

      He's probably going to fail every background check for at least a decade, maybe longer.

      No banks, government, infrastructure, etc. can hire him.

    4. Re:Second chances are good but well... by CustomSolvers2 · · Score: 1

      No banks, government, infrastructure, etc. can hire him.

      He has already a job. And jobs being too picky with background checks are usually for a few; without forgetting the fact that software development and infosec have lots of demand mainly in his area. A programmer living in Silicon Valley! Another issue offering lots of alternatives. Are you implying that a young guy, with a proper university degree, relevant expertise in the field, a job and living in one of the richest areas and with more job opportunities for him in the whole planet has any problem at all? A person who will most likely never commit another crime again and for whom the probation period will not have any kind of consequence!

      See, I don't like talking too much without knowing and have just read the summary here. I also don't wish anything bad to anyone and prefer people being happy and having favourable conditions. But what I see is a kind-of-privileged guy who didn't make the best decisions in the past and who now is getting a treatment which many other people will never get under equivalent circumstances. And I insist in that jail time would be too much, but not even losing some money seems like a win-win for him. He might have got quite scared and kind of learned the lesson. But the fact that his actions have no relevant consequences/losses seems quite unfair, a bad precedent and not the best solution for someone who has proven to not have a particularly strong personality.

      --
      Custom Solvers 2.0 = Alvaro Carballo Garcia = varocarbas.
  12. Lawyer? by Anonymous Coward · · Score: 0

    I would be interested to see if his university had anything to do with the lawyers. lol

    But honestly I read the whole article and if the kid really is as it reads in the article, then this is a win IMO. I mean all he did was send spam?

    Let's be honest. Billion dollar corporations have been sending us spam since there was a medium to put spam on. And they don't even get a slap on the wrist.

    I mean literally now someone actually recently got an ad on their flash briefing on Amazon Echo.

    This is a win for the kid and I support it.

  13. Pint of jurisprudence by ramriot · · Score: 2

    This case is similar to the one that MalwareTech (aka Marcus Hutchins) now faces in the U.S. for his role in developing the Kronos trojan Should say: This case is similar to the one that MalwareTech (aka Marcus Hutchins) now faces in the U.S. for his ALLEGED role in developing the Kronos trojan.

  14. Re:So, basically he used the money to set himself by dave420 · · Score: 3, Insightful

    He spent the money on rehabilitating himself, and will pay taxes with his job. Or would you rather the government lock him up, not receive those taxes, and instead spend even more money on his custody?

  15. Way too easy on the guy by Anonymous Coward · · Score: 0

    An easy sentence for him is to have him write to the owner of every single machine he infected a hand-written letter to tell them he is sorry for what he did and how to make sure not to have their machines infected by botnets in the future, that would fix what he has done and let him know that the more people he screws up in the future, the more work has to be done to fix it!

  16. Consistent Rulings by ytene · · Score: 2

    I can only hope that the portion of the US Administration that is currently investigating Marcus Hutchins is willing to apply a similar outlook that we see handed down here. The law should be fair for all; whilst I respect the value of allowing judicial discretion in certain circumstances, I do think it is important to be implemented in a neutral way.

  17. lack of bankruptcy for student loans drives costs by Joe_Dragon · · Score: 1

    lack of bankruptcy for student loans drives costs up as it's very easy to get one. 100K for a masters mid-evil study's with small hope of getting a job that can pay that off is no problem for the banks.

  18. Hired! by Anonymous Coward · · Score: 0

    This guy, CS Agents who deactivate Cheeto Mussolini's Twitter Account, or anyone who has "Down Perriscope!" tattooed on their private parts. All hired.

  19. Re:So, basically he used the money to set himself by Gavagai80 · · Score: 2, Insightful

    Yes, in order to avoid encouraging everyone from paying for college with criminal activities.

    --
    This space intentionally left blank
  20. Depends on the purpose of punishment by Anonymous Coward · · Score: 0

    It's a waste of taxpayer's money if he's to be punished as a deterrent. If he's to be punished for retribution then prison might be harsh. Probation seems a bit easy as the victims should receive some compensation for their troubles, though I suppose that's a civil matter.

  21. After releasing the malware by jmcwork · · Score: 1

    he and his 'co-schemers' took one of their office printers out into a field and beat the crap out of it.

  22. Re:So, basically he used the money to set himself by Anonymous Coward · · Score: 0

    It is amazing how people intellectually breeze past the fact that he is still a criminal.

  23. Re:So, basically he used the money to set himself by RingDev · · Score: 1

    From a social impact of the individual's criminality, the threat has passed, hence, there's no need to lock him up at our expense.

    From an economic impact/motivational factor for society, there's civil suits. Let him have his pockets drained until he's repaid the costs he caused others to incur.

    --
    "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
  24. Meanwhile those who did not break the law. . . by Anonymous Coward · · Score: 0

    Will be paying for decades - I've paid about $95,000 for my 80K worth of tuition and still have about 5 years and another $55k to pay off. And I'm part of the 9% who has paid off or is paying down the principal on their loans. The student loan industry is going to implode within the next decade, and watch out when it does. . .

  25. Re:So, basically he used the money to set himself by Anonymous Coward · · Score: 0

    ...there's no need to lock him up at our expense.

    Your right; we should just exile him.

  26. Justice might be by Anonymous Coward · · Score: 0

    taking on unforgivable college loans for the full amount and sending the money to something charitable.
    Along with a suspended jail sentence waiting for him if he goes back to the dark side.

    Jail means I pay for his room and board, and may make a hardened criminal, which doesn't seem right.
    The 'yes, crime pays' solution definitely doesn't seem right.

  27. So the old IT adage... by JezmundBerserker · · Score: 2

    "Never ask for permission, always ask for forgiveness" confirmed.

  28. Re:So, basically he used the money to set himself by Chas · · Score: 1

    Incarceration isn't just about rehabbing criminals.

    --


    Chas - The one, the only.
    THANK GOD!!!
  29. Re:So, basically he used the money to set himself by Luthair · · Score: 1

    Then you could make the same argument for any illegal activity, e.g. drugs, robbery, pickpocketing, etc. At 25 he was more than old enough to understand what was done was both illegal and understand that the spam was almost certainly sent to perpetuate scams (e.g. online pharmacies).

  30. Re:So, basically he used the money to set himself by Anonymous Coward · · Score: 0

    Incarceration isn't just about rehabbing criminals.

    Correct. Incarceration is also about protecting society from dangerous individuals.

    If he can show that he has been rehabilitated, or is making progress towards rehabilitation, and is not deemed a danger to others, then he should not be in prison.

    Probation (aka monitoring his behavior for a period of time) is a valid choice. See also: "suspended sentence".

    Requiring that he pay fines/ make restitution is a separate consideration from prison/probation.

  31. Re:So, basically he used the money to set himself by Anonymous Coward · · Score: 0

    I would rather they lock him up. Or would you rather a criminal that steals your wallet go free as long as they're using the money to pay for college?