Canadian man gets 20 years in prison for his role in NetWalker ransomware operation
Sebastien Vachon-Desjardins was one of NetWalker's most active affiliates, according to US court filings
A Canadian man who participated in the NetWalker ransomware as a service (RaaS) operation was given a 20-year jail term by a US federal court on Tuesday.
Sebastien Vachon-Desjardins, 34, was arrested in Canada in January 2021 and extradited to the US in March this year.
It is believed that the NetWalker RaaS operation earned him $21 million and resulted in an estimated $40 million in damages globally.
Vachon-Desjardins received his sentence in a Florida court on Tuesday, after entering a guilty plea to charges relating to his involvement in NetWalker RaaS operation.
The Canadian hacker was sentenced to 20 years in prison, which is far more than the 12 to 15 years advised by federal guidelines. He was also ordered to forfeit $21.5 million that was fraudulently collected from "dozens" of victims throughout the world.
The judge also sentenced Vachon-Desjardins to three years of supervised release upon his release from jail, with the condition that he submit to searches and provide a probation officer his financial information.
Additionally, he has been prohibited from working in IT field or possessing a personal computer.
"You have one of the worst cases I've ever seen," US District Judge William F. Jung told the Vachon-Desjardins.
The judge referred to Vachon-Desjardins as "Jesse James meets the 21st century".
"If you had gone to trial, I would have given you life," the judge said.
Vachon-Desjardins, a Quebec native, was previously given a seven-year jail term by a Canadian court for other ransomware offences.
Following a probe into the NetWalker group by the US authorities, he was detained in Canada in January 2021 and extradited to the US in March of this year.
US law enforcement shut down the group's web operations and discovered a database of affiliate information.
Police in Canada seized CAD$790,000 in cash, 719 Bitcoin valued approximately $27 million (£22 million), as well as several laptops and storage devices from Vachon-Desjardins' residence at the time of his arrest.
The Canadian was one of NetWalker's most active affiliates, according to US court filings. Between April and December 2020, he went on a cyberattack spree that hit 17 Canadian firms as well as several others throughout the world.
On May 1, 2020, he targeted a Tampa-based firm and demanded $300,000 in Bitcoin in a ransom note. The company opted not to pay and instead spent $1.2 million on the incident response.
Vachon-Desjardins has previously worked as an IT consultant for Public Works and Government Services departments in Canada.
He admitted in Florida court that he was a part of NetWalker gang, which has targeted institutions such as hospitals, schools, private firms, and government agencies in the US, Canada, and other nations.
According to a plea agreement filed with Florida court in July, Sebastien Vachon-Desjardins agreed to plead guilty to conspiracy to commit wire fraud; conspiracy to commit computer fraud; intentional damage to a protected computer system; and sending a demand in relation to damaging a protected computer.
Defence lawyer Mark O'Brien argued for a lenient sentence earlier in the proceedings by citing his client's choice to forego a trial and enter a guilty plea, his regret for his acts, and restitution to victims.
According to US attorney Carlton Gammons, NetWalker targeted as many as 400 victims in more than 30 countries and amassed $40 million in ransom payments. Gammons termed the activities "staggering." He said Vachon-Desjardins was involved in attacks that accounted for one-third of ransom payments to NetWalker gang.
The pre-sentencing report, according to Gammons, didn't show anything noteworthy that supported a shorter sentence. He said Vachon-Desjardins was well-educated, from a decent family, was not using drugs, and was not facing any financial difficulties.
General Kenneth A. Polite, Jr, assistant attorney of the US DoJ's Criminal Division, said: "The defendant identified and attacked high-value ransomware victims and profited from the chaos caused by encrypting and stealing the victims' data.
"Today's sentence demonstrates that ransomware actors will face significant consequences for their crimes and exemplifies the Department's steadfast commitment to pursuing actors who participate in ransomware schemes."