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Home News

Romanian ‘Virus’ Jailed for Hosting Malware

June 14, 2023
Reading Time: 2 mins read
in News

 

Romanian national Mihai Ionut Paunescu, also known as “Virus,” has been sentenced to three years in prison by a Manhattan federal court for operating a bulletproof hosting service that facilitated the distribution of various malware, including Gozi (Ursnif), Zeus, SpyEye, and BlackEnergy.

Bulletproof hosting services operate in countries with lenient internet laws, enabling cybercriminals to engage in illicit activities while ignoring takedown requests. Paunescu’s service not only supported the distribution of info-stealing and banking malware but also facilitated DDoS attacks and global spam campaigns.

During the investigation, Paunescu was held in custody in Colombia and Romania before being extradited to the United States. The collaboration between the police forces of these countries and the FBI played a crucial role in uncovering his cybercriminal activities. U.S. Attorney Damian Williams emphasized how Paunescu’s bulletproof hosting service allowed cybercriminals worldwide to spread malware, steal financial information, and cause significant harm. Paunescu now faces imprisonment, the forfeiture of his ill-gotten gains, and a subsequent three-year supervision period upon release.

Court documents revealed the extent of Paunescu’s activities, including providing hosting services to cybercriminals, renting IP addresses from legitimate ISPs, and offering infrastructure for botnet operations and proxies to conceal malicious traffic. Paunescu also monitored IP address spam lists and employed bypassing mechanisms to evade blocking.

The indictment further demonstrated his knowledge of the illegal nature of his clients’ operations, with servers rented for purposes such as “spyeye 100%SBL” and “zeus 100%SBL.” The most significant cybercrime activity associated with Paunescu’s hosting service was the distribution of Ursnif (Gozi), which infected over a million computers worldwide, causing substantial damages to individuals, businesses, and government entities in several countries, including the United States.

In addition to the three-year prison sentence, Paunescu was ordered to forfeit $3.5 million and pay restitution of $18,945. The impact of Ursnif was particularly highlighted by the U.S. Department of Justice, which noted that the malware infected at least 40,000 systems, including computers belonging to NASA.

This case serves as a notable example of the consequences faced by those who provide bulletproof hosting services, as they shield cybercriminals from law enforcement and cybersecurity professionals while profiting from their illicit activities.

Reference:
  • Romanian National Who Operated “Bulletproof Hosting” Service That Facilitated The Distribution Of Destructive Malware Sentenced To Three Years In Prison

Tags: Cyber NewsCyber News 2023June 2023MalwareMihai Ionut PaunescuRomania
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