An Iranian man has pleaded guilty for his role in a ransomware attack that crippled Baltimore’s computer network in 2019, halting critical city services and costing more than $19 million.
Sina Gholinejad entered the plea Tuesday, admitting his role in the scheme that took hostage computer networks of several cities, corporations and health care organizations. Once Gholinejad and his unnamed co-conspirators accessed the networks, they encrypted files and extorted Bitcoin payments via a variant of ransomware known as Robbinhood, according to a news release from the U.S. Department of Justice.
Gholinejad, who pleaded guilty to one count of computer fraud and abuse and one count of conspiracy to commit wire fraud, faces up to 30 years in prison in connection with the scheme. He is scheduled to be sentenced in August.
Baltimore Mayor Brandon Scott’s office did not immediately respond to a request for comment on the guilty plea.
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Baltimore was one of the largest victims of the 2019 attack which also targeted Greenville, North Carolina, Gresham, Oregon and Yonkers, New York. The scheme disrupted revenue-generating city services for several months, including property tax payments, water bills and parking citations. Many city agency email and phone systems were taken offline and the attack delayed the pending sale of about 1,500 homes, the New York Times reported at the time.
The hackers demanded three Bitcoins — about $17,600 at the time of the attack — per city system or 13 Bitcoins — about $76,280 at the time — for them all, The Baltimore Sun reported after obtaining a ransom note. The city ultimately refused to pay.
The $19 million loss to the city includes both lost revenue and also funds the city spent to recover from the attack. In the months after the attack, city leaders approved spending $10 million for the recovery. Costs included hiring security consultants, paying overtime to city staff and buying additional equipment.
Baltimore also bought $20 million in cyber-insurance coverage in the aftermath. One-year premiums for the coverage started at $835,000, the Wall Street Journal reported.
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