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Video DoJ Cyber Security Takes Down Darkode Malware Forums
21:00   |   02/22/2019 at 18:24


  • earlier today the Department of Justice
  • took down the website dark code this is
  • a hacking website where they actually
  • sell malware X different exploit kits
  • even botnets and some pretty
  • sophisticated things including access to
  • cellphones to exploits you know that'll
  • work against Android or Apple and
  • Windows et cetera not to mention just
  • access to complete botnets and pretty
  • much any type of hacking thing that you
  • want now this website wasn't on it was
  • an an onion website it wasn't on the
  • dark web the website was created in 2008
  • and to access it you actually had to be
  • invited by another member and they
  • started requiring actual credentials and
  • you actually having to trade pretty much
  • information and stuff just trying to get
  • into the website it was a more difficult
  • part of it so the investigation from
  • what has been released so far seems like
  • it started about a year and a half ago
  • by the FBI after they had arrested some
  • people and kind of got gained access to
  • the website now apparently this raid was
  • over 20 different countries and 70
  • people were arrested including 12 from
  • the United States it hasn't been
  • released yet how how long the government
  • had had access to the website I I do
  • believe at one point in time the site
  • was actually vulnerable to heartbleed
  • attack I might be mistaken on that it
  • was a while back but it's not known if
  • thinking you know access via hacking or
  • you know managed to get in through one
  • of the people they arrested etc but they
  • definitely had people on the inside for
  • a while now and had been tracking and
  • trying to gain the actual information of
  • the other individuals from the site dark
  • code was one of the bigger Oh actually
  • was supposedly the biggest hacking web
  • site were they
  • old exploits and malware and rootkits
  • and pretty much anything you would want
  • to get your hands on if you were a cyber
  • criminal there are other websites that
  • sell this type of information and data
  • access but this was pretty much one of
  • the most popular and heavily used more
  • information including the people's names
  • of the Americans I got arrested and what
  • their charges are which actually can be
  • pretty extensive there's one guy I think
  • has over two million cases of stealing
  • peda from users computers this
  • information is on my website and the
  • link is in the description or you can
  • just go bi t dot ly backslash da RK o de
  • dark code
  • so this takedown happened on July 15th
  • unfortunately if it would have been a
  • lot more convenient if it was about a
  • week earlier because last Monday we had
  • the release of the files from hacking
  • team which is a big company that
  • actually sells exploits and stuff to
  • other governments and other
  • organizations basically and their
  • servers were hacked and all their in all
  • their data was thrown up online which
  • included some really crafty drive-by
  • drive-by exploits basically where you
  • just log you just go to a website and it
  • just automatically hacks your computer
  • and that worked on OSX on I believe
  • Linux - and Windows so there was some
  • really cool exploits of course some for
  • Android maybe even some iPhone ones I
  • forget and unfortunately because this
  • site was up and because the source code
  • was available for the exploits be
  • because the hacker group that hacked
  • hacking team threw it up online it was
  • quickly modified for use with illegal
  • hackers and gaming within 24 hours
  • there was sales of these exploits and
  • whatnot so it is nice you know to have
  • the site found for a while
  • I'm granted these you know the people
  • that didn't get busted are definitely
  • gonna be popping up on other sites but
  • it might put a little damper in some of
  • the hacking that's going on currently
  • and more importantly it'll actually
  • probably cut down on the use of like
  • stolen credit card information and
  • personal information because while
  • people's computers might still be
  • infected and still may become infected
  • some of the command and control servers
  • are no longer going to be accessible by
  • the people that were running them
  • if not completely just don't had wiped
  • to help prevent them from getting caught
  • so this is quite an interesting takedown
  • coordinated over 20 countries and I'll
  • let the people from the Department of
  • Justice explain the rest dark code
  • represented one of the gravest threats
  • to the integrity of data on computers in
  • the United States and around the world
  • and the most sophisticated
  • english-speaking forum for criminal
  • computer hackers in the world dark code
  • has been deemed quote the best malware
  • marketplace on the web close quote
  • dark code was a tightly controlled
  • worldwide forum for exchange among
  • criminals who traffic in cyber criminal
  • tools such as exploit kits botnets
  • ransomware programs and mass spamming
  • zero-day malware a particularly
  • pernicious exploit which exposes and
  • attacks system vulnerabilities prior to
  • the correction or even the awareness of
  • the provider was one of the many items
  • featured on dark code to be accepted
  • into the dark code forum a prospective
  • new member had to be invited by an
  • existing member and could only gain
  • admission by posting what was tantamount
  • to a professional resume of illegal
  • hacking capabilities which would enhance
  • the criminal purpose of the forum dark
  • codes members conspired to generate
  • Gilgit encash through fraud extortion
  • and money laundering dark code has been
  • masterminded by a series of
  • sophisticated cyber criminals proficient
  • at computer intrusions and stealing dark
  • code members have compromised millions
  • upon millions of computers servers cell
  • phones bank accounts and social media
  • accounts and a conservative estimate
  • is that losses to victims of dark code
  • in terms of dollars and privacy have
  • been extreme in the last 24 hours a
  • coordinated takedown occurred involving
  • cooperation of law enforcement of 20
  • countries around the globe resulting in
  • the arrest charging in search of 70
  • individuals who are dark owed members
  • were their associates today we are
  • announcing charges which have been filed
  • in the United States against 12 of those
  • 70 individuals pursuant to this
  • investigation which was led by the FBI
  • and the United States Attorney's Office
  • here in western Pennsylvania and also
  • included the criminal division of the
  • United States Department of Justice in
  • addition to the criminal charges we have
  • obtained court authorization to shut
  • down the dark code forum this takedown
  • culminates a long and difficult
  • investigation and represents a huge
  • achievement protecting victims of
  • illegal cybercrime is a priority of the
  • Department of Justice in this office and
  • this case represents another important
  • watershed and our effort to make the
  • Internet safe and subject to the rule of
  • law the level of cooperation among the
  • 20 countries participating in the
  • investigation and takedown is
  • unprecedented in addition to
  • historically reliable international
  • partners this operation expanded the
  • coalition of nations cooperating against
  • cybercrime to include Costa Rica
  • Colombia Brazil Israel Cyprus and
  • Macedonia through this operation we have
  • dismantled a cyber hornet's nest of
  • criminal hackers which was believed by
  • many to be impenetrable including
  • believed to be impenetrable by the
  • hackers themselves while we have shut
  • down the forum we are also exposing dark
  • owed members and their schemes in nine
  • separate charging documents filed in the
  • Western District depends
  • Sylvania the Eastern District of
  • Wisconsin the Northern District of
  • Georgia the District of Columbia and the
  • Western District of Louisiana dark code
  • members have been charged here with
  • using Facebook spreaders to create
  • botnets which they would action off
  • malware to infect cellphones and take
  • victims personal information and
  • bulletproof servers to infect thousands
  • of computers to send millions of
  • fraudulent spam text messages this
  • criminal enterprise
  • which has been the platform for other
  • notable malware schemes such as spy I
  • Zeus Citadel the black hole exploit tip
  • kit and crime pack as well as serving as
  • the meeting place for groups such as the
  • lizard squad is no more through the
  • high-level infiltration of dark code
  • the FBI has effectively smashed the
  • hornet's nest and we are in the process
  • of rounding up and charging the Hornets
  • I would like to turn it over to Scott
  • Smith for his remarks thank you this
  • investigation demonstrates an evolution
  • in law enforcement response to this type
  • of criminal activity this case is a
  • culmination of a sophisticated two-year
  • FBI undercover operation the cyber team
  • of investigators from the Pittsburgh
  • field office infiltrated the underground
  • criminal forum dark code at the highest
  • levels and used their expertise to
  • collect evidence and intelligence on
  • dart code members cyber crime has
  • evolved to touch every part our lives
  • and every FBI program we face cyber
  • threats from state-sponsored hackers
  • from hackers for hire from criminal
  • syndicates
  • and from terrorists the dark code
  • hacking forum allowed members to buy the
  • old legal tools they needed to carry out
  • sophisticated cyber scheme
  • the investigation is believed to be the
  • largest coordinated international law
  • enforcement action targeting online
  • criminal forums to date with more than
  • hundreds of millions of dollars in
  • losses I would like to commend the
  • United States attorney Dave hickton and
  • the Western District of Pennsylvania
  • United States Attorney's Office who
  • worked on this case along with other FBI
  • offices in Washington DC San Diego
  • California and a number of other field
  • offices across the country who helped us
  • throughout this investigation today
  • marks a milestone in our efforts to
  • bring to justice some of the most
  • significant cyber criminals in the world
  • by arresting these individuals and
  • seizing the dark code hacking forum
  • we've shut down a dangerous Avenue for
  • buying and selling of malware botnets
  • and other tools of the trade for cyber
  • criminals I want to thank our
  • international partners for providing
  • technical support making arrests and
  • carrying out search warrants over the
  • course of this long and complicated
  • investigation and of course it goes
  • without saying that we couldn't have
  • done this without our private industry
  • partners help as well unfortunately
  • there's a lot more work to be done we
  • will continue to go after cyber
  • criminals that here and at home I mean
  • here and abroad all the way all around
  • the world thank you
  • good morning thank you the United States
  • Attorney hickton and Special Agent in
  • Charge Smith my name is John Lynch I'm Q
  • for the computer crime in an electoral
  • property section in the Criminal
  • Division of the Department of Justice I
  • appreciate the opportunity to help
  • announce this important worldwide
  • takedown and congratulate the teams both
  • here in the United States and around the
  • world who worked so hard to put it
  • together over a number of months the
  • criminal division is happy to have
  • supported this in four important
  • investigation over the last several
  • months and years drawing upon our close
  • relationships with the US Attorneys
  • offices and Federal Bureau of an
  • investigation field offices here in
  • Pittsburgh and across the United States
  • including Washington DC Atlanta and
  • Honolulu this operation is a great
  • example of what we can accomplish when
  • we work closely together against a
  • global cybercrime marketplace as you
  • have heard dar code grow grew to become
  • one of the most prolific and dangerous
  • forums for hacking tools and services on
  • the internet with members trading in all
  • sorts of tools for breaching and
  • damaging from heater systems like
  • similar forums that law enforcement is
  • targeted it became a self-contained
  • market governed by rules and logic that
  • closely mimic those of sophisticated
  • organizations including expectations
  • about its members conduct tiers of
  • membership and tiers and membership
  • based upon knowledge skill illegal
  • activity and reputation as dark code
  • developed into a private marketplace
  • where hackers from around the world to
  • buy and sell their skills and products
  • of their theft and fraud participants
  • use the connections they made there to
  • increase the damage and loss that they
  • could cause as well as the illicit
  • profits that they could gain effectively
  • combating this global threat required
  • close coordination with our
  • international partners the criminal
  • division participated in supporting
  • information sharing and mutual legal
  • assistance requests including request to
  • cyprus Latvia and Sweden's this
  • cooperation was managed by the criminal
  • divisions Office of International
  • Affairs which handles thousands of such
  • requests every year in all sorts of
  • cases full cyber and otherwise my
  • section the computer crime in an
  • electoral property section also
  • supported this effort by assisting with
  • information sharing with numerous
  • foreign partners and coordinating with
  • the FBI legal attache offices to ensure
  • that information and
  • we shared quickly and efficiently
  • throughout we relied on the FBI cyber
  • division and its cyber agents and field
  • offices across the country for the
  • backbone of the investigative work and
  • of course all of us also relied on the
  • expertise of the cyber initiative and
  • resource fusion unit and national cyber
  • forensics and training Alliance to FBI
  • organizations based here in Pittsburgh
  • that have been the driving force behind
  • many of our most advanced cybercrime
  • investigations the effort was also
  • shared among investigators and
  • prosecutors across the United States
  • particularly here I'm here in Pittsburgh
  • US Attorneys offices here and elsewhere
  • patiently developed cases against
  • players in the dark cloud marketplace my
  • section was happy to play a significant
  • role in several of the investigations
  • and prosecutions including the
  • prosecutions of Johan Goodman's Daniel
  • play check matches horn John Mott jazz
  • score judge and his alleged court
  • co-conspirators florencio Caro Ruiz and
  • mentor Lenny key we also supported other
  • US Attorneys offices with their
  • prosecutions including in Atlanta in New
  • Orleans include in conclusion I'm
  • pleased to be here today to support the
  • outstanding investigators and
  • prosecutors from around the world who
  • collaborated on this important
  • investigation their work demonstrates
  • that the that law enforcement will
  • continue to improve and evolve its
  • international cooperation to address the
  • global cybercrime threat thank you
  • be happy to take any questions you might
  • have I think we have eight charging
  • documents of which five are here nine
  • and the investigation is continuing so I
  • cannot give a complete answer to your
  • question but I think the losses to the
  • victims are in two silos one is the
  • invasion of their privacy which we are
  • protecting by dismantling this forum and
  • then the second is the exploitation of
  • their information through the various
  • products that these criminals produce
  • one way to look at this Elaine would be
  • think of an earlier day where a criminal
  • organization is sitting around the table
  • and the leader says you're gonna handle
  • bootlegging you're gonna handle numbers
  • you're gonna handle prosecution you're
  • gonna handle drugs you're gonna handle
  • guns that was that era in this era this
  • platform of internet crime is the
  • challenge of our age and you can
  • substitute ransomware for bootlegging
  • you can substitute botnets for
  • prostitution these are the products and
  • so on and so on these are the products
  • which these cyber criminals came
  • together in effectively this cyber
  • Clubhouse and you could either subscribe
  • to their offer or you could buy their
  • code if you look at the specific cases
  • that we brought here there's an
  • individual named Morgan Culbertson who
  • advertised online something called
  • dendrite he went online by a screen name
  • known as Android and for $300 you could
  • buy his subscription where you could
  • steal basically all aspects of your cell
  • phone we could take your text messages
  • we could send text messages remotely we
  • could take your photographs we could
  • take photographs for you remotely making
  • it look like you had taken the
  • photographs and so on and so forth so
  • you could also as advertised by this
  • code so you could do it yourself for
  • $65,000
  • this was brazenly and openly advertised
  • but this was a secret forum that for all
  • these years that it's been in existence
  • since 2008 we had to date not been able
  • to completely crack through the superb
  • leadership and investigative skill of
  • the FBI we were able to infiltrate the
  • forum and we were able to identify all
  • these individuals worldwide and one
  • tribute to how significant this forum is
  • is that we are among 20 countries that
  • are participating this investigation I
  • mean another example would be the Eric
  • Crocker case who went online by fastb
  • and
  • Eric Crocker as described in the
  • indictment offered Facebook spreading
  • which would be to infiltrate your
  • Facebook account and basically steal
  • your friend list and then sell your
  • friend lists and exploit your friend
  • list many times without you even knowing
  • it there is really no limit to what
  • these individuals did in their principle
  • and and and and very very productive
  • criminal activities but the dark code
  • forum was their safe place where they
  • came together to share this hacking and
  • code exchange which allowed them to do
  • it and that's why this case is such a
  • significant achievement yes

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The Department of Justice's Cyber Security division launched a 20 country coordinated takedown of the hacking website/forum Darkode, codename Shrouded Horizon. About 70 of its members have been identified and many arrested across the world, including 12 from America. Darkode has been a marketplace to purchase and trade hacking tools since at least 2008. It's considered the largest, most sophisticated English-language criminal marketplace in the world, and hackers go there when they need the latest malware, spam programs, and access to botnets and 0-day vulnerabilities. More info:
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