Parents of teenage computer hacker convicted for his part in the TalkTalk data breach get suspended jail sentences for transferring £200,000 of ill-gotten Bitcoins from a seized wallet after his arrest

Phoebe Eckersley reports: The parents of a teenager who hacked into TalkTalk and sold personal data for cryptocurrency have been spared jail. Carlie, 44, and Jason Gunton, 45, whose son Elliott Gunton was convicted, were given suspended sentences for helping transfer funds on behalf of their son, it was heard at Norwich Crown Court today. Read more on The Daily Mail

TalkTalk hacker also breached EtherDelta cryptocurrency exchange

Catalin Cimpanu has the scoop on this one: US authorities have indicted two suspects for hacking cryptocurrency exchange EtherDelta in December 2017, changing the site’s DNS settings, and redirecting traffic to a clone where they logged user credentials and then stole customer funds. One of the two suspects is Elliott Gunton, also known as “Glubz,” a 20-year-old from the UK, better known for participating in the TalkTalk hack. The other is Anthony Tyler Nashatka, also known as “psycho,” a resident of New York. Read more on ZDNet.

UK: TalkTalk hacker Daniel Kelley sentenced to 4 years in jail

From the Crown Prosecution Service: A blackmailing hacker behind the TalkTalk cyber-attack – which cost the company £77million after the personal details of 157,000 customers were stolen – has today (10 June) been sentenced. Daniel Kelley, 22, admitted targeting at least six organisations by threatening to sell their hacked data on the ‘dark web’ unless they paid him hundreds of thousands of pounds in Bitcoin. Where they refused, he made good on his threats. In October 2015, Kelley was one of many hackers who used software called ‘SQL injection’ to attack TalkTalk, whose then-chief executive Dido Harding was subjected to repeated extortion attempts demanding £80,000 in Bitcoin in exchange for stolen customer data. He has now been sentenced to four years in youth detention. Investigations revealed details relating to 156,959 accounts were accessed, of which 15,656 had their bank account and sort code numbers accessed. Kelley advertised this data for sale at $1,450,000 on a dark web site called ‘dbs4sale’. TalkTalk lost £42million as a direct result of the attack and £35million in other costs, including the loss of 95,000 customers. In another blackmail campaign, Kelley spent weeks hounding Australian firm For The Record for cash in return for not making its stolen customer data public. Fearing for its reputation, the company made several payments totalling 26.65 Bitcoin (£4,380.12). But Kelley continued to demand more from a marketing director at the firm, telling him in foul-mouthed messages: “I could annihilate your company in days.” On 13 May 2015, the employee received an email from Kelley containing a picture of his 18-month-old son with a message reading: “How fun would it be find your sons [sic] background ruined online, before he has even hit 10?” The message – a clear threat to modify the child’s picture for sexual purposes – came alongside a series of menacing phone calls. In an early example of his hacking, Kelley also attacked a college near his hometown in revenge for tutors refusing him a place on a BTEC computer course because he had not passed enough GCSEs. Throughout 2013 and 2014, Coleg Dir Gar in south-west Wales was subjected to repeated ‘Distributed Denial of Service’ attacks.  The disruption cost students hundreds of hours of teaching time and affected other parts of the Welsh public sector broadband network, costing a minimum of £399,000 in taxpayers’ money to mitigate. Describing themselves as ‘Team Hans’, Kelley also coached two accomplices to hack Canada’s Rogers Communications and send threatening messages to one of its employees. At an earlier hearing at the Old Bailey, Kelley pleaded guilty to blackmail charges involving a further three companies. Russell Tyner, CPS specialist prosecutor, said: “Daniel Kelley is an opportunistic and utterly ruthless hacker who, motivated by financial gain and spite, caused enormous financial and reputational damage to his victims. “Far from showing mercy to the distressed employees of the companies he targeted, it is clear he took a vindictive pleasure in the anxiety and suffering his bullying inflicted on them.” Building the case Kelley operated largely via an anonymous browsing network known as ‘the Onion Router’ and had also disguised his IP address, which made detecting his criminal activities extremely difficult. However, the CPS was able to prove his culpability after diligently and meticulously examining evidence hidden in his digital devices, including chat logs and Bitcoin accounts. Other files found on his computer included thousands of credit card numbers and details of the holders. Software and other tools designed to assist or enable hacking were also recovered from his computer, including SQLi tools which allow for rapid scanning of the entire internet. Mr Tyner added: “Hidden behind a cloak of anonymity, Kelley thought he could act with impunity by targeting companies worldwide he thought were vulnerable to cyber-attack. “Indeed he saw himself as a coach and mentor to his fellow hackers. But, working with colleagues in Canada and Australia, the CPS was able to piece together the many complex strands of evidence, which resulted in Kelley pleading guilty to 11 offences.”

TalkTalk hacker Daniel Kelley became ‘ruthless’ cyber criminal after being rejected from college computer course

Emily Pennink reports: A teenager rejected from a college computer course became a “ruthless” online criminal who took part in the huge TalkTalk hack and blackmailed the company’s former chief executive. Disgruntled student Daniel Kelley, from Llanelli, turned to “black hat” hacking when he failed to get the necessary GCSE grades to get into a Carmarthenshire college. He went on to target companies both large and small, as far afield as Canada and Australia, and attempted to hold bosses to ransom. The 22-year-old appeared at the Old Bailey to be sentenced on Wednesday after pleading guilty to 11 hacking-related offences. Read more on Wales Online.

UK: Computer hacker, 21, faces jail for stealing customer details from TalkTalk in massive data breach which cost the mobile network £77m

Henry Martin reports: A computer hacker who stole customer details from mobile network TalkTalk in a massive data breach which cost the company £77m in lost business is facing jail. Daniel Kelley, 21, was one of a group of cyber criminals behind the massive data breach in October 2015. The gang also demanded 465 bitcoin – now worth more than £285,000 – from 51-year-old former TalkTalk chief executive Dido Harding in exchange for not releasing the data. […] Kelley appeared at the Old Bailey today as the Crown indicated it was no longer in the public interest to proceed after doctors deemed him unfit to stand trial through depression. They asked that the single count of blackmail lie on his file. Read more on Daily Mail. Wow. When you see what the others were sentenced  to,  also, you see once again how dramatically lighter sentencing for hacking is in the U.K. So Kelley gets some charges dropped because he’s too depressed to stand trial?  And the minute the threat disappears, will his depression lift enough for him to resume hacking? Jeez….