Boeing confirmed that the LockBit ransomware gang attack in October 2023, which impacted certain parts and distribution operations of the company, carried a staggering $200 million cyber extortion demand from the cybercriminals, to not publish leaked data. Boeing on Wednesday acknowledged that it is the unnamed “multinational aeronautical and defense corporation headquartered in Virginia,” which is referenced in an unsealed indictment from the U.S. Department of Justice that unmasked the LockBitSupp administrator. Boeing did not provide an immediate response to The Cyber Express' inquiry seeking confirmation of this news, which was initially reported by Cyberscoop. The indictment in question singled out Dmitry Yuryevich Khoroshev as the principal administrator and developer behind the LockBit ransomware operation, as part of a coordinated international effort that included sanctions from the U.S., the U.K., and Australia. Boeing has not provided confirmation on the negotiations and if the company paid any ransom in exchange of the massive $200 million cyber extortion demand.

Boeing Cyber Extortion Saga

LockBit first listed Boeing as its victim on October 27 and set a ransom payment deadline for November 2. Boeing had chosen not to provide any comments or statements regarding the incident, at that time, leaving the LockBit claims unverified. Three days later LockBit took down Boeing’s name from the victims’ list fueling further speculations that it was a hoax or the company likely paid ransom. Following this incident, Boeing eventually confirmed falling victim to LockBit’s cyberattack. But as ransom negotiations reportedly failed, LockBit re-listed Boeing on its leak site and threatened to publish 4 gigabytes of sample data as proof of the Boeing data breach. The post also warned that, “All available data will be published!” in coming days. Following on the threat, LockBit published more than 40GB of data on November 10, as the company likely did not agree to pay the ransom demand. Boeing is yet to address the stolen data publicly.

Ransom Demands Getting Exorbitant

The indictment's reference to the unnamed company highlights the exorbitant ransom demands made by Khoroshev and his cohorts, totaling over $500 million in ransoms extorted from victims since late 2019. Of this, he got nearly $100 million from a 20% share on the ransom payments, which was further “used to continue funding the LockBit operation and its infrastructure.” Ransomware analysts are now calling the Boeing cyber extortion as one of the largest ransom demands from a ransomware gang till date. Researchers suspects LockBit likely made an inflated demand, without realistic expectations of receiving the full amount, merely to test the waters. Between September 2019 and February 2024, Khoroshev grew LockBit into a massive global criminal operation in which along with his affiliates he attacked approximately 2,500 victims, which included nearly 1,800 in the U.S. alone, the indictment said. Apart from Boeing LockBit’s victim list also contains law enforcement agencies, security firms, municipalities, schools, financial institutions and even multinational fast-food chains.

Who is LockBit Ransomware Gang?

The LockBit ransomware gang emerged in 2019, primarily targeting thousands of global companies, with a focus on those headquartered in the United States. Linked to Russian entities, LockBit has amassed tens of millions of dollars in ransom payments since its inception. According to the Cybersecurity and Infrastructure Security Agency (CISA), LockBit has executed over 1700 attacks in the United States, often by compromising and threatening to release sensitive data for financial gain. The recent Boeing data breach highlights the persistent threat posed by cyberattacks to major corporations. LockBit's aggressive tactics and specific targeting of Boeing, a key player in aerospace and defense, highlight the urgent need for robust cybersecurity measures. The ransomware group's imposed deadline heightens the urgency, highlighting the severe consequences of data breaches and the critical importance of safeguarding sensitive information. Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.

Borrowing from the playbook of ransomware purveyors, the darknet narcotics bazaar Incognito Market has begun extorting all of its vendors and buyers, threatening to publish cryptocurrency transaction and chat records of users who refuse to pay a fee ranging from $100 to $20,000. The bold mass extortion attempt comes just days after Incognito Market administrators reportedly pulled an “exit scam” that left users unable to withdraw millions of dollars worth of funds from the platform.

In the past 24 hours, the homepage for the Incognito Market was updated to include a blackmail message from its owners, saying they will soon release purchase records of vendors who refuse to pay to keep the records confidential.

“We got one final little nasty surprise for y’all,” reads the message to Incognito Market users. “We have accumulated a list of private messages, transaction info and order details over the years. You’ll be surprised at the number of people that relied on our ‘auto-encrypt’ functionality. And by the way, your messages and transaction IDs were never actually deleted after the ‘expiry’….SURPRISE SURPRISE!!! Anyway, if anything were to leak to law enforcement, I guess nobody never slipped up.”

Incognito Market says it plans to publish the entire dump of 557,000 orders and 862,000 cryptocurrency transaction IDs at the end of May.

“Whether or not you and your customers’ info is on that list is totally up to you,” the Incognito administrators advised. “And yes, this is an extortion!!!!”

The extortion message includes a “Payment Status” page that lists the darknet market’s top vendors by their handles, saying at the top that “you can see which vendors care about their customers below.” The names in green supposedly correspond to users who have already opted to pay.

We’ll be publishing the entire dump of 557k orders and 862k crypto transaction IDs at the end of May, whether or not you and your customers’ info is on that list is totally up to you. And yes, this is an extortion!!!!

Incognito Market said it plans to open up a “whitelist portal” for buyers to remove their transaction records “in a few weeks.”

The mass-extortion of Incognito Market users comes just days after a large number of users reported they were no longer able to withdraw funds from their buyer or seller accounts. The cryptocurrency-focused publication Cointelegraph.com reported Mar. 6 that Incognito was exit-scamming its users out of their bitcoins and Monero deposits.

CoinTelegraph notes that Incognito Market administrators initially lied about the situation, and blamed users’ difficulties in withdrawing funds on recent changes to Incognito’s withdrawal systems.

Incognito Market deals primarily in narcotics, so it’s likely many users are now worried about being outed as drug dealers. Creating a new account on Incognito Market presents one with an ad for 5 grams of heroin selling for $450.

The double whammy now hitting Incognito Market users is somewhat akin to the double extortion techniques employed by many modern ransomware groups, wherein victim organizations are hacked, relieved of sensitive information and then presented with two separate ransom demands: One in exchange for a digital key needed to unlock infected systems, and another to secure a promise that any stolen data will not be published or sold, and will be destroyed.

Incognito Market has priced its extortion for vendors based on their status or “level” within the marketplace. Level 1 vendors can supposedly have their information removed by paying a $100 fee. However, larger “Level 5” vendors are asked to cough up $20,000 payments.

The past is replete with examples of similar darknet market exit scams, which tend to happen eventually to all darknet markets that aren’t seized and shut down by federal investigators, said Brett Johnson, a convicted and reformed cybercriminal who built the organized cybercrime community Shadowcrew many years ago.

“Shadowcrew was the precursor to today’s Darknet Markets and laid the foundation for the way modern cybercrime channels still operate today,” Johnson said. “The Truth of Darknet Markets? ALL of them are Exit Scams. The only question is whether law enforcement can shut down the market and arrest its operators before the exit scam takes place.”