Leader of ‘Bulletproof’ Web Hosting Site Behind 400 Cyber Attacks Indicted

The leader behind a “bulletproof” web hosting site that facilitated ransomware attacks resulting in ransom payouts of approximately $146 million, has been indicted on multiple charges, according to unsealed court documents.

The indictment was unsealed Thursday by prosecutors in Tampa Bay, Florida. It charged the owner of web hosting company LolekHosted, Artur Karol Grabowski, with computer fraud conspiracy, wire fraud conspiracy, and international money laundering. 

“Bulletproof” web hosting services provide servers and a networking infrastructure intended to protect criminal actors engaged in illegal activities including ransomware, brute-force attacks, and phishing from take-down attempts, according to studies.

The Justice Department stepped up its efforts to crack down on cyber attacks earlier this summer, when it announced the creation of the new National Security Cyber Section within its National Security Division. Meanwhile, the Biden Administration launched a National CyberSecurity Strategy in July.

Polish national Grabowski is just the latest to be charged in association with ransomware attacks. A Russian resident, Mikhail Pavlovich Matveev, was charged by federal authorities earlier this summer with carrying out ransomware attacks resulting in victim payouts of $200 million. The FBI took down a notorious ransomware group, Hive, which targeted 1,500 victims in 80 countries, in January.

Grabowski registered LolekHosted.net as a domain in 2014, according to the Department of Justice, and allowed its clients to host “everything but child porn.” LolekHosted facilitated ransomware attacks on 400 company networks, including school districts, colleges, hospitals and law enforcement, according to prosecutors, resulting in payments of over 5,000 bitcoin in ransoms. The bitcoin payments are currently valued at about $146 million, according to federal authorities. 

Ransomware attacks were carried out around the globe, including in the Middle District of Florida, where the case is being prosecuted. 

Grabowski is still at large but faces up to 45 years in prison if convicted and is ordered to hand over $21.5 million to authorities.