{"id":14318,"date":"2017-08-07T14:46:57","date_gmt":"2017-08-07T14:46:57","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2017\/08\/07\/judge-sets-30k-bail-for-uk-researcher-in-malware-case\/"},"modified":"2026-08-08T17:56:10","modified_gmt":"2026-08-08T17:56:10","slug":"judge-sets-30k-bail-for-uk-researcher-in-malware-case","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/newsletters\/2017\/08\/07\/judge-sets-30k-bail-for-uk-researcher-in-malware-case\/","title":{"rendered":"Judge sets $30K bail for UK researcher in malware case"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">A Las Vegas federal judge set bail of $30,000 on Friday for a celebrated young British cybersecurity researcher <a href=\"http:\/\/www.fifthdomain.com\/civilian\/fbi-doj\/2017\/08\/03\/wannacry-hero-indicted-on-six-hacking-related-charges\/\">accused <\/a>by U.S. prosecutors of creating and distributing malicious software designed to steal banking passwords.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The attorney for Marcus Hutchins, who has broad support in the information-security community, said the 23-year-old hacker would contest the charges. She said he would not be released until Monday because there wasn\u2019t enough time to post bail after Friday\u2019s afternoon ruling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hutchins is due in federal court in Milwaukee on Tuesday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The U.K. resident gained overnight fame with quick thinking in May when he helped curb the spread of the WannaCry ransomware attack that had crippled thousands of computers worldwide.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Much of the cybersecurity community rallied around Hutchins after his arrest Wednesday, calling him a principled, ethical hacker.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The conditions of his release came as a relief for his supporters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is excellent news,\u201d said Nicholas Weaver, a computer scientist at the University of California at Berkeley. \u201cThe indictment is remarkably shallow even by indictment standards, which is disappointing because it adds considerable uncertainty and fosters distrust with the general security community.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Las Vegas-based attorney Adrian Lobo said money for Hutchins\u2019 bond would come from a variety of supporters and family in the U.S. and abroad. The Electronic Frontier Foundation, a digital leading civil liberties non-profit, said it helped arrange Hutchins counsel and was working to find him an attorney to provide \u201cthe best possible defense.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cSecurity researchers are vital to protecting the computers we rely upon every day,\u201d EFF general counsel Kurt Opsahl said via email. \u201cMr. Hutchins\u2019 arrest has unfortunately deepened the divide between the research community and the government.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Weaver said federal prosecutors and the FBI were making a mistake by not providing more details about the crimes it alleges Hutchins committed. \u201cHaving more information would act to reassure the larger security community,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the hearing, assistant U.S. attorney Dan Cowhig said Hutchins admitted to authorities in an interview following his arrest that he was the author of the malware code and sold it. He said the government has evidence of chat logs in which Hutchins discussed with an associate the sale of the Kronos banking Trojan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Magistrate Judge Nancy Koppe said Hutchins is not a danger to the community and has sufficient community support to not be a flight risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">She ordered him to surrender his passport and said he could fly to Wisconsin, where he was indicted last month, without identification.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe most recent charge in the indictment is in July of 2015. That\u2019s two years ago that the defendant has been free to roam the world during that period of time,\u201d she said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hutchins did not enter a plea at Friday\u2019s hearing. He was arrested while preparing to return home from the Def Con convention for computer security professionals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He stands accused of creating and distributing malware known as the Kronos banking Trojan. Such malware infects web browsers, then captures usernames and passwords when an unsuspecting user visits a bank or other trusted location, enabling cybertheft.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Computer law expert Tor Ekeland described the evidence so in the case far as flimsy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is a very, very problematic prosecution to my mind, and I think it\u2019s bizarre that the United States government has chosen to prosecute somebody who\u2019s arguably their hero in the WannaCry malware attack and potentially saved lives and thousands, hundreds of thousands, if not millions, of dollars over the sale of alleged malware,\u201d Ekeland said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The indictment alleges that Hutchins and another defendant \u2014 whose name was redacted \u2014 conspired between July 2014 and July 2015 to advertise the availability of the Kronos malware on internet forums, sell the malware and profit from it. The indictment also accuses Hutchins of creating the malware.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Programs, however, can often include code written by multiple programmers. Prosecutors might need to prove that Hutchins wrote code that targeted specific institutions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">U.S. Justice Department officials on Friday declined to answers questions about the case. The FBI\u2019s Milwaukee field office, which led the 2-year investigation, didn\u2019t return requests for comment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ekeland said that what is notable to him from the indictment is that it doesn\u2019t allege any financial loss to any victims \u2014 or in any way identify them. Besides that, laws covering aspects of computer crime are unclear, often giving prosecutors broad discretion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe only money mentioned in this indictment is &#8230; for the sale of the software,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jake Williams, a respected cybersecurity researcher, said he found it difficult to believe Hutchins is guilty. The two men have worked together on various projects, including training material for higher education for which the Briton declined payment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hutchins lives with his family in the town of Ilfracombe, England, and worked out of his bedroom.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">His mother, Janet, who has been frantically trying to reach her son, said she was \u201coutraged\u201d by the arrest and that it was \u201chugely unlikely\u201d her son was involved because he spends much of his time combatting such attacks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Back in May, the curly-haired computer whiz and surfing enthusiast discovered a so-called \u201ckill switch\u201d that slowed the unprecedented WannaCry outbreak.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He then spent the next three days fighting the worm that crippled Britain\u2019s hospital network as well as factories, government agencies, banks and other businesses around the world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Though he had always worked under the moniker of MalwareTech, cracking WannaCry led to the loss of his anonymity and propelled him to cyber stardom. There were appearances and a $10,000 prize for cracking WannaCry. He planned to donate the money to charity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI don\u2019t think I\u2019m ever going back to the MalwareTech that everyone knew,\u201d he told The Associated Press at the time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Las Vegas federal judge set bail of $30,000 on Friday for a celebrated young British cybersecurity researcher accused by U.S. prosecutors of creating and distributing malicious software designed to steal banking 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