The Doghouse: Crown Sterling

A decade ago, the Doghouse was a regular feature in both my email newsletter Crypto-Gram and my blog. In it, I would call out particularly egregious — and amusing — examples of cryptographic “snake oil.”

I dropped it both because it stopped being fun and because almost everyone converged on standard cryptographic libraries, which meant standard non-snake-oil cryptography. But every so often, a new company comes along that is so ridiculous, so nonsensical, so bizarre, that there is nothing to do but call it out.

Crown Sterling is complete and utter snake oil. The company sells “TIME AI,” “the world’s first dynamic ‘non-factor’ based quantum AI encryption software,” “utilizing multi-dimensional encryption technology, including time, music’s infinite variability, artificial intelligence, and most notably mathematical constancies to generate entangled key pairs.” Those sentence fragments tick three of my snake-oil warning signs — from 1999! — right there: pseudo-math gobbledygook (warning sign #1), new mathematics (warning sign #2), and extreme cluelessness (warning sign #4).

More: “In March of 2019, Grant identified the first Infinite Prime Number prediction pattern, where the discovery was published on Cornell University’s www.arXiv.org titled: ‘Accurate and Infinite Prime Number Prediction from Novel Quasi-Prime Analytical Methodology.’ The paper was co-authored by Physicist and Number Theorist Talal Ghannam PhD. The discovery challenges today’s current encryption framework by enabling the accurate prediction of prime numbers.” Note the attempt to leverage Cornell’s reputation, even though the preprint server is not peer-reviewed and allows anyone to upload anything. (That should be another warning sign: undeserved appeals to authority.) PhD student Mark Charney took the time to refute it. Most of it is wrong, and what’s right isn’t new.

I first encountered the company earlier this year. In January, Tom Yemington from the company emailed me, asking to talk. “The founder and CEO, Robert Grant is a successful healthcare CEO and amateur mathematician that has discovered a method for cracking asymmetric encryption methods that are based on the difficulty of finding the prime factors of a large quasi-prime numbers. Thankfully the newly discovered math also provides us with much a stronger approach to encryption based on entangled-pairs of keys.” Sounds like complete snake-oil, right? I responded as I usually do when companies contact me, which is to tell them that I’m too busy.

In April, a colleague at IBM suggested I talk with the company. I poked around at the website, and sent back: “That screams ‘snake oil.’ Bet you a gazillion dollars they have absolutely nothing of value — and that none of their tech people have any cryptography expertise.” But I thought this might be an amusing conversation to have. I wrote back to Yemington. I never heard back — LinkedIn suggests he left in April — and forgot about the company completely until it surfaced at Black Hat this year.

Robert Grant, president of Crown Sterling, gave a sponsored talk: “The 2019 Discovery of Quasi-Prime Numbers: What Does This Mean For Encryption?” I didn’t see it, but it was widely criticized and heckled. Black Hat was so embarrassed that it removed the presentation from the conference website. (Parts of it remain on the Internet. Here’s a short video from the company, if you want to laugh along with everyone else at terms like “infinite wave conjugations” and “quantum AI encryption.” Or you can read the company’s press release about what happened at Black Hat, or Grant’s Twitter feed.)

Grant has no cryptographic credentials. His bio — on the website of something called the “Resonance Science Foundation” — is all over the place: “He holds several patents in the fields of photonics, electromagnetism, genetic combinatorics, DNA and phenotypic expression, and cybernetic implant technologies. Mr. Grant published and confirmed the existence of quasi-prime numbers (a new classification of prime numbers) and their infinite pattern inherent to icositetragonal geometry.”

Grant’s bio on the Crown Sterling website contains this sentence, absolutely beautiful in its nonsensical use of mathematical terms: “He has multiple publications in unified mathematics and physics related to his discoveries of quasi-prime numbers (a new classification for prime numbers), the world’s first predictive algorithm determining infinite prime numbers, and a unification wave-based theory connecting and correlating fundamental mathematical constants such as Pi, Euler, Alpha, Gamma and Phi.” (Quasi-primes are real, and they’re not new. They’re numbers with only large prime factors, like RSA moduli.)

Near as I can tell, Grant’s coauthor is the mathematician of the company: “Talal Ghannam — a physicist who has self-published a book called The Mystery of Numbers: Revealed through their Digital Root as well as a comic book called The Chronicles of Maroof the Knight: The Byzantine.” Nothing about cryptography.

There seems to be another technical person. Ars Technica writes: “Alan Green (who, according to the Resonance Foundation website, is a research team member and adjunct faculty for the Resonance Academy) is a consultant to the Crown Sterling team, according to a company spokesperson. Until earlier this month, Green — a musician who was ‘musical director for Davy Jones of The Monkees’ — was listed on the Crown Sterling website as Director of Cryptography. Green has written books and a musical about hidden codes in the sonnets of William Shakespeare.”

None of these people have demonstrated any cryptographic credentials. No papers, no research, no nothing. (And, no, self-publishing doesn’t count.)

After the Black Hat talk, Grant — and maybe some of those others — sat down with Ars Technica and spun more snake oil. They claimed that the patterns they found in prime numbers allows them to break RSA. They’re not publishing their results “because Crown Sterling’s team felt it would be irresponsible to disclose discoveries that would break encryption.” (Snake-oil warning sign #7: unsubstantiated claims.) They also claim to have “some very, very strong advisors to the company” who are “experts in the field of cryptography, truly experts.” The only one they name is Larry Ponemon, who is a privacy researcher and not a cryptographer at all.

Enough of this. All of us can create ciphers that we cannot break ourselves, which means that amateur cryptographers regularly produce amateur cryptography. These guys are amateurs. Their math is amateurish. Their claims are nonsensical. Run away. Run, far, far, away.

But be careful how loudly you laugh when you do. Not only is the company ridiculous, it’s litigious as well. It has sued ten unnamed “John Doe” defendants for booing the Black Hat talk. (It also sued Black Hat, which may have more merit. The company paid good money to have its talk presented amongst actual peer-reviewed talks. For Black Hat to remove its nonsense very well be a breach of contract.)

Maybe Crown Sterling can file a meritless lawsuit against me instead for this post. I’m sure it would think it’d result in all sorts of positive press coverage. (Although any press is good press, so maybe it’s right.) But it I can prevent others from getting taken in by this stuff, it would be a good thing.

The Doghouse: Crown Sterling

A decade ago, the Doghouse was a regular feature in both my email newsletter Crypto-Gram and my blog. In it, I would call out particularly egregious — and amusing — examples of cryptographic “snake oil.”

I dropped it both because it stopped being fun and because almost everyone converged on standard cryptographic libraries, which meant standard non-snake-oil cryptography. But every so often, a new company comes along that is so ridiculous, so nonsensical, so bizarre, that there is nothing to do but call it out.

Crown Sterling is complete and utter snake oil. The company sells “TIME AI,” “the world’s first dynamic ‘non-factor’ based quantum AI encryption software,” “utilizing multi-dimensional encryption technology, including time, music’s infinite variability, artificial intelligence, and most notably mathematical constancies to generate entangled key pairs.” Those sentence fragments tick three of my snake-oil warning signs — from 1999! — right there: pseudo-math gobbledygook (warning sign #1), new mathematics (warning sign #2), and extreme cluelessness (warning sign #4).

More: “In March of 2019, Grant identified the first Infinite Prime Number prediction pattern, where the discovery was published on Cornell University’s www.arXiv.org titled: ‘Accurate and Infinite Prime Number Prediction from Novel Quasi-Prime Analytical Methodology.’ The paper was co-authored by Physicist and Number Theorist Talal Ghannam PhD. The discovery challenges today’s current encryption framework by enabling the accurate prediction of prime numbers.” Note the attempt to leverage Cornell’s reputation, even though the preprint server is not peer-reviewed and allows anyone to upload anything. (That should be another warning sign: undeserved appeals to authority.) PhD student Mark Charney took the time to refute it. Most of it is wrong, and what’s right isn’t new.

I first encountered the company earlier this year. In January, Tom Yemington from the company emailed me, asking to talk. “The founder and CEO, Robert Grant is a successful healthcare CEO and amateur mathematician that has discovered a method for cracking asymmetric encryption methods that are based on the difficulty of finding the prime factors of a large quasi-prime numbers. Thankfully the newly discovered math also provides us with much a stronger approach to encryption based on entangled-pairs of keys.” Sounds like complete snake-oil, right? I responded as I usually do when companies contact me, which is to tell them that I’m too busy.

In April, a colleague at IBM suggested I talk with the company. I poked around at the website, and sent back: “That screams ‘snake oil.’ Bet you a gazillion dollars they have absolutely nothing of value — and that none of their tech people have any cryptography expertise.” But I thought this might be an amusing conversation to have. I wrote back to Yemington. I never heard back — LinkedIn suggests he left in April — and forgot about the company completely until it surfaced at Black Hat this year.

Robert Grant, president of Crown Sterling, gave a sponsored talk: “The 2019 Discovery of Quasi-Prime Numbers: What Does This Mean For Encryption?” I didn’t see it, but it was widely criticized and heckled. Black Hat was so embarrassed that it removed the presentation from the conference website. (Parts of it remain on the Internet. Here’s a short video from the company, if you want to laugh along with everyone else at terms like “infinite wave conjugations” and “quantum AI encryption.” Or you can read the company’s press release about what happened at Black Hat, or Grant’s Twitter feed.)

Grant has no cryptographic credentials. His bio — on the website of something called the “Resonance Science Foundation” — is all over the place: “He holds several patents in the fields of photonics, electromagnetism, genetic combinatorics, DNA and phenotypic expression, and cybernetic implant technologies. Mr. Grant published and confirmed the existence of quasi-prime numbers (a new classification of prime numbers) and their infinite pattern inherent to icositetragonal geometry.”

Grant’s bio on the Crown Sterling website contains this sentence, absolutely beautiful in its nonsensical use of mathematical terms: “He has multiple publications in unified mathematics and physics related to his discoveries of quasi-prime numbers (a new classification for prime numbers), the world’s first predictive algorithm determining infinite prime numbers, and a unification wave-based theory connecting and correlating fundamental mathematical constants such as Pi, Euler, Alpha, Gamma and Phi.” (Quasi-primes are real, and they’re not new. They’re numbers with only large prime factors, like RSA moduli.)

Near as I can tell, Grant’s coauthor is the mathematician of the company: “Talal Ghannam — a physicist who has self-published a book called The Mystery of Numbers: Revealed through their Digital Root as well as a comic book called The Chronicles of Maroof the Knight: The Byzantine.” Nothing about cryptography.

There seems to be another technical person. Ars Technica writes: “Alan Green (who, according to the Resonance Foundation website, is a research team member and adjunct faculty for the Resonance Academy) is a consultant to the Crown Sterling team, according to a company spokesperson. Until earlier this month, Green — a musician who was ‘musical director for Davy Jones of The Monkees’ — was listed on the Crown Sterling website as Director of Cryptography. Green has written books and a musical about hidden codes in the sonnets of William Shakespeare.”

None of these people have demonstrated any cryptographic credentials. No papers, no research, no nothing. (And, no, self-publishing doesn’t count.)

After the Black Hat talk, Grant — and maybe some of those others — sat down with Ars Technica and spun more snake oil. They claimed that the patterns they found in prime numbers allows them to break RSA. They’re not publishing their results “because Crown Sterling’s team felt it would be irresponsible to disclose discoveries that would break encryption.” (Snake-oil warning sign #7: unsubstantiated claims.) They also claim to have “some very, very strong advisors to the company” who are “experts in the field of cryptography, truly experts.” The only one they name is Larry Ponemon, who is a privacy researcher and not a cryptographer at all.

Enough of this. All of us can create ciphers that we cannot break ourselves, which means that amateur cryptographers regularly produce amateur cryptography. These guys are amateurs. Their math is amateurish. Their claims are nonsensical. Run away. Run, far, far, away.

But be careful how loudly you laugh when you do. Not only is the company ridiculous, it’s litigious as well. It has sued ten unnamed “John Doe” defendants for booing the Black Hat talk. (It also sued Black Hat, which may have more merit. The company paid good money to have its talk presented amongst actual peer-reviewed talks. For Black Hat to remove its nonsense very well be a breach of contract.)

Maybe Crown Sterling can file a meritless lawsuit against me instead for this post. I’m sure it would think it’d result in all sorts of positive press coverage. (Although any press is good press, so maybe it’s right.) But it I can prevent others from getting taken in by this stuff, it would be a good thing.

The Doghouse: Crown Sterling

A decade ago, the Doghouse was a regular feature in both my email newsletter Crypto-Gram and my blog. In it, I would call out particularly egregious — and amusing — examples of cryptographic “snake oil.”

I dropped it both because it stopped being fun and because almost everyone converged on standard cryptographic libraries, which meant standard non-snake-oil cryptography. But every so often, a new company comes along that is so ridiculous, so nonsensical, so bizarre, that there is nothing to do but call it out.

Crown Sterling is complete and utter snake oil. The company sells “TIME AI,” “the world’s first dynamic ‘non-factor’ based quantum AI encryption software,” “utilizing multi-dimensional encryption technology, including time, music’s infinite variability, artificial intelligence, and most notably mathematical constancies to generate entangled key pairs.” Those sentence fragments tick three of my snake-oil warning signs — from 1999! — right there: pseudo-math gobbledygook (warning sign #1), new mathematics (warning sign #2), and extreme cluelessness (warning sign #4).

More: “In March of 2019, Grant identified the first Infinite Prime Number prediction pattern, where the discovery was published on Cornell University’s www.arXiv.org titled: ‘Accurate and Infinite Prime Number Prediction from Novel Quasi-Prime Analytical Methodology.’ The paper was co-authored by Physicist and Number Theorist Talal Ghannam PhD. The discovery challenges today’s current encryption framework by enabling the accurate prediction of prime numbers.” Note the attempt to leverage Cornell’s reputation, even though the preprint server is not peer-reviewed and allows anyone to upload anything. (That should be another warning sign: undeserved appeals to authority.) PhD student Mark Charney took the time to refute it. Most of it is wrong, and what’s right isn’t new.

I first encountered the company earlier this year. In January, Tom Yemington from the company emailed me, asking to talk. “The founder and CEO, Robert Grant is a successful healthcare CEO and amateur mathematician that has discovered a method for cracking asymmetric encryption methods that are based on the difficulty of finding the prime factors of a large quasi-prime numbers. Thankfully the newly discovered math also provides us with much a stronger approach to encryption based on entangled-pairs of keys.” Sounds like complete snake-oil, right? I responded as I usually do when companies contact me, which is to tell them that I’m too busy.

In April, a colleague at IBM suggested I talk with the company. I poked around at the website, and sent back: “That screams ‘snake oil.’ Bet you a gazillion dollars they have absolutely nothing of value — and that none of their tech people have any cryptography expertise.” But I thought this might be an amusing conversation to have. I wrote back to Yemington. I never heard back — LinkedIn suggests he left in April — and forgot about the company completely until it surfaced at Black Hat this year.

Robert Grant, president of Crown Sterling, gave a sponsored talk: “The 2019 Discovery of Quasi-Prime Numbers: What Does This Mean For Encryption?” I didn’t see it, but it was widely criticized and heckled. Black Hat was so embarrassed that it removed the presentation from the conference website. (Parts of it remain on the Internet. Here’s a short video from the company, if you want to laugh along with everyone else at terms like “infinite wave conjugations” and “quantum AI encryption.” Or you can read the company’s press release about what happened at Black Hat, or Grant’s Twitter feed.)

Grant has no cryptographic credentials. His bio — on the website of something called the “Resonance Science Foundation” — is all over the place: “He holds several patents in the fields of photonics, electromagnetism, genetic combinatorics, DNA and phenotypic expression, and cybernetic implant technologies. Mr. Grant published and confirmed the existence of quasi-prime numbers (a new classification of prime numbers) and their infinite pattern inherent to icositetragonal geometry.”

Grant’s bio on the Crown Sterling website contains this sentence, absolutely beautiful in its nonsensical use of mathematical terms: “He has multiple publications in unified mathematics and physics related to his discoveries of quasi-prime numbers (a new classification for prime numbers), the world’s first predictive algorithm determining infinite prime numbers, and a unification wave-based theory connecting and correlating fundamental mathematical constants such as Pi, Euler, Alpha, Gamma and Phi.” (Quasi-primes are real, and they’re not new. They’re numbers with only large prime factors, like RSA moduli.)

Near as I can tell, Grant’s coauthor is the mathematician of the company: “Talal Ghannam — a physicist who has self-published a book called The Mystery of Numbers: Revealed through their Digital Root as well as a comic book called The Chronicles of Maroof the Knight: The Byzantine.” Nothing about cryptography.

There seems to be another technical person. Ars Technica writes: “Alan Green (who, according to the Resonance Foundation website, is a research team member and adjunct faculty for the Resonance Academy) is a consultant to the Crown Sterling team, according to a company spokesperson. Until earlier this month, Green — a musician who was ‘musical director for Davy Jones of The Monkees’ — was listed on the Crown Sterling website as Director of Cryptography. Green has written books and a musical about hidden codes in the sonnets of William Shakespeare.”

None of these people have demonstrated any cryptographic credentials. No papers, no research, no nothing. (And, no, self-publishing doesn’t count.)

After the Black Hat talk, Grant — and maybe some of those others — sat down with Ars Technica and spun more snake oil. They claimed that the patterns they found in prime numbers allows them to break RSA. They’re not publishing their results “because Crown Sterling’s team felt it would be irresponsible to disclose discoveries that would break encryption.” (Snake-oil warning sign #7: unsubstantiated claims.) They also claim to have “some very, very strong advisors to the company” who are “experts in the field of cryptography, truly experts.” The only one they name is Larry Ponemon, who is a privacy researcher and not a cryptographer at all.

Enough of this. All of us can create ciphers that we cannot break ourselves, which means that amateur cryptographers regularly produce amateur cryptography. These guys are amateurs. Their math is amateurish. Their claims are nonsensical. Run away. Run, far, far, away.

But be careful how loudly you laugh when you do. Not only is the company ridiculous, it’s litigious as well. It has sued ten unnamed “John Doe” defendants for booing the Black Hat talk. (It also sued Black Hat, which may have more merit. The company paid good money to have its talk presented amongst actual peer-reviewed talks. For Black Hat to remove its nonsense very well be a breach of contract.)

Maybe Crown Sterling can file a meritless lawsuit against me instead for this post. I’m sure it would think it’d result in all sorts of positive press coverage. (Although any press is good press, so maybe it’s right.) But it I can prevent others from getting taken in by this stuff, it would be a good thing.

Twitter temporarily disables ‘Tweeting via SMS’ after CEO gets hacked

Twitter today finally decided to temporarily disable a feature, called ‘Tweeting via SMS,’ after it was abused by a hacking group to compromise Twitter CEO Jack Dorsey last week and sent a series of racist and offensive tweets to Dorsey’s followers.

Dorsey’s Twitter account was compromised last week when a hacker group calling itself “Chuckling Squad” replicated a mobile phone number

Twitter temporarily disables ‘Tweeting via SMS’ after CEO gets hacked

Twitter today finally decided to temporarily disable a feature, called ‘Tweeting via SMS,’ after it was abused by a hacking group to compromise Twitter CEO Jack Dorsey last week and sent a series of racist and offensive tweets to Dorsey’s followers.

Dorsey’s Twitter account was compromised last week when a hacker group calling itself “Chuckling Squad” replicated a mobile phone number

Just An SMS Could Let Remote Attackers Access All Your Emails, Experts Warn

Beware! Billion of Android users can easily be tricked into changing their devices’ critical network settings with just an SMS-based phishing attack.

Whenever you insert a new SIM in your phone and connects to your cellular network for the very first time, your carrier service automatically configures or sends you a message containing network-specific settings required to connect to data

Just An SMS Could Let Remote Attackers Access All Your Emails, Experts Warn

Beware! Billion of Android users can easily be tricked into changing their devices’ critical network settings with just an SMS-based phishing attack.

Whenever you insert a new SIM in your phone and connects to your cellular network for the very first time, your carrier service automatically configures or sends you a message containing network-specific settings required to connect to data

Rising Fines Will Push Breach Costs Much Higher

The cost of breaches will rise by two-thirds over the next five years, exceeding an estimated $5 trillion in 2024, primarily driven by higher fines as more jurisdictions punish companies for lax security.

Rising Fines Will Push Breach Costs Much Higher

The cost of breaches will rise by two-thirds over the next five years, exceeding an estimated $5 trillion in 2024, primarily driven by higher fines as more jurisdictions punish companies for lax security.

Rising Fines Will Push Breach Costs Much Higher

The cost of breaches will rise by two-thirds over the next five years, exceeding an estimated $5 trillion in 2024, primarily driven by higher fines as more jurisdictions punish companies for lax security.

New Free Offering Enables Any MSP and Security Integrator to Add Incident Response to their Services Portfolio

The Incident Response (IR) services market is in accelerated growth due to the rise in cyberattacks that result in breaches. More and more organizations, across all sizes and verticals, choose to outsource IR to 3rd party service providers over handling security incidents in-house.

Cynet is now launching a first-of-its-kind offering, enabling any Managed Security Provider (MSP) or Security

New Free Offering Enables Any MSP and Security Integrator to Add Incident Response to their Services Portfolio

The Incident Response (IR) services market is in accelerated growth due to the rise in cyberattacks that result in breaches. More and more organizations, across all sizes and verticals, choose to outsource IR to 3rd party service providers over handling security incidents in-house.

Cynet is now launching a first-of-its-kind offering, enabling any Managed Security Provider (MSP) or Security

Firefox 69 Now Blocks 3rd-Party Tracking Cookies and Cryptominers By Default

Mozilla has finally enabled the “Enhanced Tracking Protection” feature for all of its web browser users worldwide by default with the official launch of Firefox 69 for Windows, Mac, Linux, and Android.

The company enabled the “Enhanced Tracking Protection” setting by default for its browser in June this year, but only for new users who downloaded and installed a fresh copy of Firefox.

Firefox 69 Now Blocks 3rd-Party Tracking Cookies and Cryptominers By Default

Mozilla has finally enabled the “Enhanced Tracking Protection” feature for all of its web browser users worldwide by default with the official launch of Firefox 69 for Windows, Mac, Linux, and Android.

The company enabled the “Enhanced Tracking Protection” setting by default for its browser in June this year, but only for new users who downloaded and installed a fresh copy of Firefox.

Exploit Reseller Offering Up To $2.5 Million For Android Zero-Days

Well, there’s some good news for hackers and vulnerability hunters, though terrible news for Google, Android device manufacturers, and their billions of users worldwide.

The zero-day buying and selling industry has recently taken a shift towards Android operating system, offering up to $2.5 million payouts to anyone who sells ‘full chain, zero-click, with persistence’ Android zero-days.
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Exploit Reseller Offering Up To $2.5 Million For Android Zero-Days

Well, there’s some good news for hackers and vulnerability hunters, though terrible news for Google, Android device manufacturers, and their billions of users worldwide.

The zero-day buying and selling industry has recently taken a shift towards Android operating system, offering up to $2.5 million payouts to anyone who sells ‘full chain, zero-click, with persistence’ Android zero-days.
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‘Satori’ IoT Botnet Operator Pleads Guilty

A 21-year-old man from Vancouver, Wash. has pleaded guilty to federal hacking charges tied to his role in operating the “Satori” botnet, a crime machine powered by hacked Internet of Things (IoT) devices that was built to conduct massive denial-of-service attacks targeting Internet service providers, online gaming platforms and Web hosting companies.

Kenneth “Nexus-Zeta” Schuchman, in an undated photo.

Kenneth Currin Schuchman pleaded guilty to one count of aiding and abetting computer intrusions. Between July 2017 and October 2018, Schuchman was part of a conspiracy with at least two other unnamed individuals to develop and use Satori in large scale online attacks designed to flood their targets with so much junk Internet traffic that the targets became unreachable by legitimate visitors.

According to his plea agreement, Schuchman — who went by the online aliases “Nexus” and “Nexus-Zeta” — worked with at least two other individuals to build and use the Satori botnet, which harnessed the collective bandwidth of approximately 100,000 hacked IoT devices by exploiting vulnerabilities in various wireless routers, digital video recorders, Internet-connected security cameras, and fiber-optic networking devices.

Satori was originally based on the leaked source code for Mirai, a powerful IoT botnet that first appeared in the summer of 2016 and was responsible for some of the largest denial-of-service attacks ever recorded (including a 620 Gbps attack that took KrebsOnSecurity offline for almost four days).

Throughout 2017 and into 2018, Schuchman worked with his co-conspirators — who used the nicknames “Vamp” and “Drake” — to further develop Satori by identifying and exploiting additional security flaws in other IoT systems.

Schuchman and his accomplices gave new monikers to their IoT botnets with almost each new improvement, rechristening their creations with names including “Okiru,” and “Masuta,” and infecting up to 700,000 compromised systems.

The plea agreement states that the object of the conspiracy was to sell access to their botnets to those who wished to rent them for launching attacks against others, although it’s not clear to what extent Schuchman and his alleged co-conspirators succeeded in this regard.

Even after he was indicted in connection with his activities in August 2018, Schuchman created a new botnet variant while on supervised release. At the time, Schuchman and Drake had something of a falling out, and Schuchman later acknowledged using information gleaned by prosecutors to identify Drake’s home address for the purposes of “swatting” him.

Swatting involves making false reports of a potentially violent incident — usually a phony hostage situation, bomb threat or murder — to prompt a heavily-armed police response to the target’s location. According to his plea agreement, the swatting that Schuchman set in motion in October 2018 resulted in “a substantial law enforcement response at Drake’s residence.”

As noted in a September 2018 story, Schuchman was not exactly skilled in the art of obscuring his real identity online. For one thing, the domain name used as a control server to synchronize the activities of the Satori botnet was registered to the email address nexuczeta1337@gmail.com. That domain name was originally registered to a “ZetaSec Inc.” and to a “Kenny Schuchman” in Vancouver, Wash.

People who operate IoT-based botnets maintain and build up their pool of infected IoT systems by constantly scanning the Internet for other vulnerable systems. Schuchman’s plea agreement states that when he received abuse complaints related to his scanning activities, he responded in his father’s identity.

“Schuchman frequently used identification devices belonging to his father to further the criminal scheme,” the plea agreement explains.

While Schuchman may be the first person to plead guilty in connection with Satori and its progeny, he appears to be hardly the most culpable. Multiple sources tell KrebsOnSecurity that Schuchman’s co-conspirator Vamp is a U.K. resident who was principally responsible for coding the Satori botnet, and as a minor was involved in the 2015 hack against U.K. phone and broadband provider TalkTalk.

Multiple sources also say Vamp was principally responsible for the 2016 massive denial-of-service attack that swamped Dyn — a company that provides core Internet services for a host of big-name Web sites. On October 21, 2016, an attack by a Mirai-based IoT botnet variant overwhelmed Dyn’s infrastructure, causing outages at a number of top Internet destinations, including Twitter, Spotify, Reddit and others.

The investigation into Schuchman and his alleged co-conspirators is being run out the FBI field office in Alaska, spearheaded by some of the same agents who helped track down and ultimately secure guilty pleas from the original co-authors of the Mirai botnet.

It remains to be seen what kind of punishment a federal judge will hand down for Schuchman, who reportedly has been diagnosed with Asperger Syndrome and autism. The maximum penalty for the single criminal count to which he’s pleaded guilty is 10 years in prison and fines of up to $250,000.

However, it seems likely his sentencing will fall well short of that maximum: Schuchman’s plea deal states that he agreed to a recommended sentence “at the low end of the guideline range as calculated and adopted by the court.”

‘Satori’ IoT Botnet Operator Pleads Guilty

A 21-year-old man from Vancouver, Wash. has pleaded guilty to federal hacking charges tied to his role in operating the “Satori” botnet, a crime machine powered by hacked Internet of Things (IoT) devices that was built to conduct massive denial-of-service attacks targeting Internet service providers, online gaming platforms and Web hosting companies.

Kenneth “Nexus-Zeta” Schuchman, in an undated photo.

Kenneth Currin Schuchman pleaded guilty to one count of aiding and abetting computer intrusions. Between July 2017 and October 2018, Schuchman was part of a conspiracy with at least two other unnamed individuals to develop and use Satori in large scale online attacks designed to flood their targets with so much junk Internet traffic that the targets became unreachable by legitimate visitors.

According to his plea agreement, Schuchman — who went by the online aliases “Nexus” and “Nexus-Zeta” — worked with at least two other individuals to build and use the Satori botnet, which harnessed the collective bandwidth of approximately 100,000 hacked IoT devices by exploiting vulnerabilities in various wireless routers, digital video recorders, Internet-connected security cameras, and fiber-optic networking devices.

Satori was originally based on the leaked source code for Mirai, a powerful IoT botnet that first appeared in the summer of 2016 and was responsible for some of the largest denial-of-service attacks ever recorded (including a 620 Gbps attack that took KrebsOnSecurity offline for almost four days).

Throughout 2017 and into 2018, Schuchman worked with his co-conspirators — who used the nicknames “Vamp” and “Drake” — to further develop Satori by identifying and exploiting additional security flaws in other IoT systems.

Schuchman and his accomplices gave new monikers to their IoT botnets with almost each new improvement, rechristening their creations with names including “Okiru,” and “Masuta,” and infecting up to 700,000 compromised systems.

The plea agreement states that the object of the conspiracy was to sell access to their botnets to those who wished to rent them for launching attacks against others, although it’s not clear to what extent Schuchman and his alleged co-conspirators succeeded in this regard.

Even after he was indicted in connection with his activities in August 2018, Schuchman created a new botnet variant while on supervised release. At the time, Schuchman and Drake had something of a falling out, and Schuchman later acknowledged using information gleaned by prosecutors to identify Drake’s home address for the purposes of “swatting” him.

Swatting involves making false reports of a potentially violent incident — usually a phony hostage situation, bomb threat or murder — to prompt a heavily-armed police response to the target’s location. According to his plea agreement, the swatting that Schuchman set in motion in October 2018 resulted in “a substantial law enforcement response at Drake’s residence.”

As noted in a September 2018 story, Schuchman was not exactly skilled in the art of obscuring his real identity online. For one thing, the domain name used as a control server to synchronize the activities of the Satori botnet was registered to the email address nexuczeta1337@gmail.com. That domain name was originally registered to a “ZetaSec Inc.” and to a “Kenny Schuchman” in Vancouver, Wash.

People who operate IoT-based botnets maintain and build up their pool of infected IoT systems by constantly scanning the Internet for other vulnerable systems. Schuchman’s plea agreement states that when he received abuse complaints related to his scanning activities, he responded in his father’s identity.

“Schuchman frequently used identification devices belonging to his father to further the criminal scheme,” the plea agreement explains.

While Schuchman may be the first person to plead guilty in connection with Satori and its progeny, he appears to be hardly the most culpable. Multiple sources tell KrebsOnSecurity that Schuchman’s co-conspirator Vamp is a U.K. resident who was principally responsible for coding the Satori botnet, and as a minor was involved in the 2015 hack against U.K. phone and broadband provider TalkTalk.

Multiple sources also say Vamp was principally responsible for the 2016 massive denial-of-service attack that swamped Dyn — a company that provides core Internet services for a host of big-name Web sites. On October 21, 2016, an attack by a Mirai-based IoT botnet variant overwhelmed Dyn’s infrastructure, causing outages at a number of top Internet destinations, including Twitter, Spotify, Reddit and others.

The investigation into Schuchman and his alleged co-conspirators is being run out the FBI field office in Alaska, spearheaded by some of the same agents who helped track down and ultimately secure guilty pleas from the original co-authors of the Mirai botnet.

It remains to be seen what kind of punishment a federal judge will hand down for Schuchman, who reportedly has been diagnosed with Asperger Syndrome and autism. The maximum penalty for the single criminal count to which he’s pleaded guilty is 10 years in prison and fines of up to $250,000.

However, it seems likely his sentencing will fall well short of that maximum: Schuchman’s plea deal states that he agreed to a recommended sentence “at the low end of the guideline range as calculated and adopted by the court.”

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