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Sebastien Vachon - Desjardins, a Canadian individual labeled a sophisticated cyberterrorist by an Ontario judge, has recently admitted guilt in a string of NetWalker ransomware

Sebastien Vachon-Desjardins, a Canadian individual labeled a "sophisticated cyberterrorist" by an Ontario judge, has recently admitted guilt in a string of NetWalker ransomware attacks on 17 Canadian entities. This acknowledgment encompasses participation in extortion resulting in almost $3 million in losses and drawing in millions more through cryptocurrency transactions.
The case stands as one of Canada's most substantial cybercrime instances, involving data theft from various sectorseducation, healthcare, government, and commerce. Judge G. Paul Renwick, in a February 1 ruling, described Vachon-Desjardins' actions as "extreme and significant," highlighting the monumental impact of the losses incurred.
Formerly employed in Canadian government IT, Vachon-Desjardins showcased proficiency in breaching private computer networks, seizing control of their data, demanding ransom payments in bitcoin, and distributing data if the demands were unmet.
Judge Renwick emphasized Vachon-Desjardins' pivotal role in these offenses, aiding groups like NetWalker in enhancing their extortion techniques and concealing their gains. As a result, Vachon-Desjardins received a sentence of six years and eight months in a federal penitentiary.
Vachon-Desjardins' involvement with NetWalker, a cybercriminal group utilizing sophisticated ransomware, gained attention last year when the U.S. Department of Justice pressed charges against him as part of an international investigation. Allegations stated illegal acquisition of over $27.6 million by Vachon-Desjardins.
Ransomware, a malicious software, encrypts victim files, granting attackers control, and demanding payment in cryptocurrency for file restoration. NetWalker targeted several Canadian entities, including the College of Nurses of Ontario, a Canadian Tire store in B.C., and the Northwest Territories Power Corporation.
In a guilty plea before Judge Renwick, Vachon-Desjardins admitted victimizing 17 Canadian entities between May 2020 and January 2021. The judgment listed victims like Cgep de St-Flicien and the city of Montmagny, among others, to whom Renwick ordered restitution payments.
Canadian authorities detected Vachon-Desjardins' activities in August 2020 following a tip from the U.S. FBI. Utilizing IP addresses, email details, social media disclosures, and data from U.S. authorities, Canadian investigators narrowed in on Vachon-Desjardins.
Upon searching his residence, authorities found $640,040, and Vachon-Desjardins admitted to converting "ill-gotten cryptocurrency" into Canadian dollars through unlawful means. He confessed to handling over 1,200 Bitcoins linked to NetWalker activities, with the RCMP seizing around 720 Bitcoins, valued at approximately $34.5 million.
Additionally, numerous devices seized contained roughly 20 terabytes of data, leading to multiple warrant applications for searches and seizures overseen by Judge Renwick.
During confessions to the RCMP, Vachon-Desjardins detailed criminal activities involving Canadian victims over two days in November 2021, significantly aiding law enforcement's case building. Renwick recognized Vachon-Desjardins' early guilty plea and apparent remorse as mitigating factors.
The subsequent steps for Vachon-Desjardins remain uncertain. Renwick's judgment leaves open considerations about the jurisdiction for serving the imprisonment sentence in relation to sentences in other jurisdictions.
Wendy Gillis, a Toronto-based reporter covering crime and policing for the Star, contributed to this report.

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