San Francisco Chronicle

Hero hacker denies theft of bank data

- By Ivan Moreno

MILWAUKEE — A British cybersecur­ity researcher credited with helping curb a recent worldwide ransomware attack pleaded not guilty Monday to federal charges accusing him of creating malicious software to steal banking informatio­n three years ago.

Marcus Hutchins entered his plea in Wisconsin federal court, where prosecutor­s charged him and an unnamed codefendan­t with conspiring to commit computer fraud in the state and elsewhere. Authoritie­s arrested the 23-year-old man on Aug. 2 at McCarran Internatio­nal Airport in Las Vegas, where he was going to board a flight to his home in Ilfracombe, England. He had been in Las Vegas for a cybersecur­ity convention.

Hutchins’ attorney, Marcia Hofmann, said after Monday’s brief hearing that Hutchins will fight the charges and that “when the evidence comes to light, we are confident he will be fully vindicated.”

“Marcus Hutchins is a brilliant young man and a hero,” Hofmann said.

Hutchins left afterward in a white SUV with tinted windows and did not talk to reporters. During the hearing, he only spoke to say “I do,” when Magistrate Judge William Duffin asked him if he understood his rights.

Hutchins is free on $30,000 bail, but with strict conditions. His bond has been modified so that he can stay in Los Angeles near his attorney and travel anywhere in the U.S., but he cannot leave the country. He was also granted access to use a computer for work, a change from an earlier judge’s order barring him from using any device with access to the Internet. Hutchins has been working for a network security company, according to prosecutor­s, who did not oppose allowing him access to a computer for work.

Hutchins is required to wear a GPS monitor, but Duffin said the court will consider removing that requiremen­t once Hutchins has found a home in Los Angeles and is complying with the terms of his bond.

The legal troubles Hutchins faces are a dramatic turnaround from the status of cy ber crime fighting hero he enjoyed four months ago when he found a “kill switch” to slow the outbreak of the WannaCry virus. It crippled computers worldwide, encrypting files and making them inaccessib­le unless people paid a ransom ranging from $300 to $600.

Prosecutor­s allege that before Hutchins won acclaim, he created and distribute­d a malicious software called Kronos to steal banking passwords from unsuspecti­ng computer users. In addition to computer fraud, the indictment lists five other charges, including attempting to intercept electronic communicat­ions and trying to access a computer without authorizat­ion.

Ivan Moreno is an Associated Press writer.

 ?? Joshua Lott / AFP / Getty Images ?? Marcus Hutchins (right), who discovered a “kill switch” to slow the outbreak of the WannaCry virus this year, arrives at a Milwaukee court with his lawyers.
Joshua Lott / AFP / Getty Images Marcus Hutchins (right), who discovered a “kill switch” to slow the outbreak of the WannaCry virus this year, arrives at a Milwaukee court with his lawyers.

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