CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$36,151.00
  • ethereum
    ETH$1,222.26
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Uber’s Former CSO Charged With Covering Up A Hack And Paying $100K In Bitcoin

    Uber’s Former CSO Charged With Covering Up A Hack And Paying $100K In Bitcoin

    Author: Jordan Lyanchev

    Last Updated Aug 21, 2020 @ 09:39

    Uber’s former CSO charged with obstruction of justice for covering up a 2016 hack, in which he didn’t contact the authorities but paid the hackers the ransom in Bitcoin.

    The US Department of Justice has alleged that Joseph Sullivan, the former Chief Security Officer of Uber, has covered up a 2016 hack on the company that compromised data of millions of users and drivers. According to the DOJ, Sullivan paid the hackers $100,000 in Bitcoin.

    Uber Former CSO Covers Up A Hack?

    The announcement from the DOJ informed about a recently filed complaint against Sullivan, who served as Uber’s CSO from April 2015 to November 2017. It charged him with “obstruction of justice and misprision of a felony in connection with the attempted cover-up of the 2016 hack of Uber Technologies Incorporated.”

    The hackers had contacted Sullivan at the time and revealed that they had accessed and downloaded an Uber database containing personally identifying information (PII) associated with nearly 60 million Uber users and drivers. That particular database included over 600,000 drivers’ license numbers for people driving for the company.

    Uber Building. Source: Uber
    Uber Building. Source: Uber

    The hackers demanded a six-figure payment not to go public with the story and share the personal details. According to the complaint, Sullivan failed to contact the proper authorities. Instead, he “took deliberate steps to conceal, deflect, and mislead the Federal Trade Commission about the breach.”

    “Silicon Valley is not the Wild West. We expect good corporate citizenship. We expect prompt reporting of criminal conduct. We expect cooperation with our investigations. We will not tolerate corporate cover-ups. We will not tolerate illegal hush-money payments.” – said US Attorney David Anderson.

    FBI Deputy Special Agent in Charge Craig Fair asserted that Sullivan’s actions are a crime. He warned other companies not to follow his example as it will only worsen the problem for the firm, the customers, and the authorities.

    Sullivan Paid In Bitcoin

    DOJ’s statement explained that instead of reaching out to the FTC, Sullivan sought to pay the hackers off by funneling the ransom through a bug bounty program. This means employing a third-party intermediary to arrange the entire payment process.

    Ultimately, Uber paid the hackers $100,000 in Bitcoin in December 2016, even though the attackers refused to disclose their true names. Sullivan demanded that they sign non-disclosure agreements containing a false representation that the hackers did not take or store any valuable data.

    Even when two of the hackers were exposed and arrested, he arranged for them to sign fresh copies of the non-disclose agreements in their actual names. The new agreements retained the false condition that no data had been obtained in the hack.

    If convicted, Sullivan could face a maximum statutory penalty of five years in prison for the obstruction charge and a maximum of three years in prison for the misprision charge.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • BidenTrumpBitcoin
      Trump Or Biden? Max Keiser Explains Why Bitcoin Will Be The Ultimate Winner After the US Elections
    • filb2
      $14,000 By End of 2020 a Reasonable Target for Bitcoin's Price: Filb Filb in Exclusive Trader's Digest
    • BitcoinEthereumSquarePayPal
      The Digital Age Is Here: Crypto And Fintech Companies Soar, While Bank Stocks Tank
    Read more on: Bitcoin Hacking Security United States

    About The Author

    Jordan Lyanchev View more posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

  • bitcoin
    BTC$36,151.00
  • ethereum
    ETH$1,222.26
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    binance
    Bitcoin Editorials
    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!