DigitalMint Employee Fired for Working with Hackers
By Mark Hunter
11 hours agoFri Jul 04 2025 07:40:04
Reading Time: 2 minutes
The U.S. Justice Department has opened a criminal investigation into a former ransomware negotiator at DigitalMint
DigitalMint terminated the employee after they negotiated a kickback from a hacker
Cyber-insurance brokers have warned clients about using DigitalMint’s services while the inquiry continues
Federal prosecutors are examining claims that an unnamed ex-employee of crypto hack negotiator DigitalMint cut side deals with ransomware gangs, pocketing a share of the extortion payments the firm was hired to relay. DigitalMint says it removed the employee immediately after discovering the scheme and has handed over internal records, but risk consultants are advising companies to pause engagements with the broker until the case is resolved. The episode could prove ruinous for DigitalMint and is another stain on the reputation of the crypto space, which is trying to move away from being seen as a tool for criminals.
Hacker Negotiator Negotiated With Hackers
DigitalMint revealed the damning incident to partner organisations this week, with President Marc Jason Grens informing them that investigators are probing whether the negotiator inflated ransom demands and routed a slice of the cryptocurrency back to private wallets. “Trust is earned every day,” Grens said, noting that the company “began communicating the facts to affected stakeholders as soon as we were able.” Chief Executive Jonathan Solomon added that DigitalMint “acted swiftly to protect our clients and has been cooperating with law enforcement.”
“A negotiator is not incentivized to drive the price down if the company they work for profits from a bigger check—plain and simple,” said James Taliento, chief executive of threat-intel firm AFTRDRK.
Hacker Negotiation Is Like Playing With Fire
Since 2014, DigitalMint says it has helped negotiate more than 2,000 ransomware incidents for organizations ranging from small businesses to Fortune 500 giants, but security researchers argue that paying hackers is fraught with danger. “At best, a payment funds the ransomware group’s operations,’ argued Allan Liska, a threat analyst with Recorded Future, concluding, “at worst, it marks the victim as willing to pay and invites another attack.”
The probe highlights the Justice Department’s increasing scrutiny of intermediaries that facilitate ransom payments. Similar concerns surfaced in a 2019 ProPublica exposé showing brokers secretly paying hackers while billing clients for “data recovery,” and officials now signal they will pursue any middlemen who enrich cyber-criminal ecosystems.
As for whether DigitalMint can recover from this PR disaster, only time will tell, but it will certainly prove to be a chastening period regardless.
Information contained on this page is provided by an independent third-party content provider. This website make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact editor @producerpress.com
