US Court Orders Seizure Of XRP And Stellar In $8.3M Forfeiture

A US court has ordered the forfeiture of more than $8.3 million in cryptocurrency and physical assets tied to Angelo Martino, a former ransomware negotiator who was convicted of secretly colluding with the BlackCat ransomware group while posing as a trusted advisor to his victims.

A Double Agent Inside the Incident Response Industry

Martino was employed at the Chicago cybersecurity company DigitalMint, where he negotiated on behalf of companies whose computers were hacked and held for multimillion-dollar ransom payments. Rather than protecting clients, Martino shared confidential information he gained from his work as a ransomware negotiator, including victim organisations' negotiating positions and insurance policy limits, to extract the maximum payment for himself and other BlackCat affiliates.

In all, he and his associates extorted more than $75 million in ransoms from four companies and a nonprofit organisation that he represented as a negotiator. The victims included hospitality, retail, medical, and financial services businesses. Martino, 41, of Land O'Lakes, Florida, was sentenced to 70 months for his role in conspiring with BlackCat/ALPHV actors to extort multiple victims, as well as conspiring with other former cybersecurity professionals to attack additional victims in 2023.

Alongside Martino, Ryan Goldberg of Georgia and Kevin Martin of Texas were also involved in the scheme. On May 1, his co-conspirators Kevin Martin and Ryan Goldberg were each sentenced to 48 months in prison for their roles in the conspiracy.

Multi-Chain Crypto Portfolio and Physical Assets Seized

The US District Court for the Southern District of Florida issued a forfeiture order targeting his hidden crypto portfolios. The total value of the seized assets is estimated at $8.37 million, spread across several blockchain ecosystems: 90.319 $BTC worth approximately $5.84 million; 7,999.873 $XMR worth approximately $2.46 million, held in the privacy-focused Monero cryptocurrency; 56,174.15 $XRP seized from wallet "...EkThx6"; and 39,760.79 $XLM held at address "...5RJ3BD". Small holdings of Solana's native SOL token were also confiscated during the operation.

Authorities have also seized a bayfront home with an estimated value of $1.68 million, a second single-family home with an estimated value of $396,000, multiple vehicles, a food truck, and a 29-foot luxury fishing boat that Martino obtained using proceeds from his crimes. A hearing to determine the amount of restitution to be ordered against Martino is set for September 17.

Sources:
US Department of Justice: Florida Ransomware Negotiator Sentenced to Prison
Help Net Security: Ransomware Negotiator Who Betrayed Clients Sentenced to 70 Months
CyberScoop: Former DigitalMint Ransomware Negotiator Sentenced to 70 Months