Ex-Canadian government worker pleads guilty to U.S. ransomware charges

A former Canadian federal public servant from Gatineau, Que., who pleaded guilty in Canada after a ransomware investigation that netted tens of millions of dollars' worth of seized bitcoinhas now pleaded guilty to similar charges in the United States.

Sbastien Vachon-Desjardins was arrested by RCMP in January last yearon allegations he was a key figure in an international ransomware ring known as NetWalker.

NetWalker isalleged to have targeted businesses and other institutions by encrypting data on their systems, and then holding that data for ransom. It'salso alleged it accessed and stole sensitive personal information about employees, clients andusers.

After the RCMP arrest, Vachon-Desjardins was charged with mischief in relation to computer data, unauthorized use of a computer, extortionand participating in a criminal organization.

In January this year, he pleaded guilty via video in a Brampton, Ont., courtroom to all but the unauthorized use of a computer charge, and was sentenced to seven years in prison.

The RCMP and Department of Justice said in March that Vachon-Desjardinsfacedsimilar charges in Floridaand he was extradited that month.

In Florida court documents dated May 23,Vachon-Desjardins pleaded guilty to four charges. The government recommends he get a lesserpenalty when he issentenced.

Vachon-Desjardins agreed to forfeit about $21.5 million USremaining from proceeds of these crimes,along with27.65 bitcoins, and co-operate with other investigations.

As part of the agreement, he agreeshe "was one of the most prolific NetWalker Ransomware affiliates."

FBI contacted RCMP in 2020

The RCMP's investigation intoVachon-Desjardinsbegan in August 2020 when the FBI asked for help to identify a Canadian suspect in its NetWalkerinvestigation.

Those Florida court documents showVachon-Desjardins infiltrated an unnamed company in Tampa on April 30, 2020.

That company, referred to as Victim 1 in the documents, spent about $1.2 million US to get back to normal instead of paying the $300,000 US demanded in a noteVachon-Desjardins sent.

Evidence the FBI gave to the RCMP allowed itto start its own probeinto whethercrimes had been committed in Canada.

• International cybercops derail botnet used to extort, steal data around the globe
• Ex Canadian government worker extradited to U.S.

RCMP and Gatineau policesearched the Gatineau home of Vachon-Desjardins in January 2021 and seizedcomputing and storage devices, 719 bitcoins (worth tens of millions of dollars) and $790,000 Cdn.

The cryptocurrency seizure was believedto be the largest in Canada to datein terms of monetary value,the RCMP said then.

Public Services and Procurement Canada wrote in an email this past Marchthat Vachon-Desjardinshadn't been employed at the department since Jan. 13, but declined to answer other questions about his employment history.