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Accused `Raccoon' Malware Developer Fled Ukraine After Russian Invasion

October 31, 2022
[14]21 Comments

A 26-year-old Ukrainian man is awaiting extradition from The
Netherlands to the United States on charges that he acted as a core
developer for Raccoon, a popular "malware-as-a-service" offering that
helped paying customers steal passwords and financial data from
millions of cybercrime victims. KrebsOnSecurity has learned that the
defendant was busted in March 2022, after fleeing mandatory military
service in Ukraine in the weeks following the Russian invasion.

Ukrainian national Mark Sokolovsky, seen here in a Porsche Cayenne on
Mar. 18 fleeing mandatory military service in Ukraine. This image was
taken by Polish border authorities as Sokolovsky's vehicle entered
Germany. Image: KrebsOnSecurity.com.

The U.S. Attorney for the Western District of Texas unsealed an
indictment last week that named Ukrainian national Mark Sokolovsky as
the core developer for the Raccoon Infostealer business, which was
marketed on several Russian-language cybercrime forums beginning in
2019.

Raccoon was essentially a Web-based control panel, where -- for $200 a
month -- customers could get the latest version of the Raccoon
Infostealer malware, and interact with infected systems in real time.
Security experts say the passwords and other data stolen by Raccoon
malware were often resold to groups engaged in deploying ransomware.

Working with investigators in Italy and The Netherlands, U.S.
authorities seized a copy of the server used by Raccoon to help
customers manage their botnets. According to the U.S. Justice
Department, FBI agents have identified more than 50 million unique
credentials and forms of identification (email addresses, bank
accounts, cryptocurrency addresses, credit card numbers, etc.) stolen
with the help of Raccoon.

The Raccoon v. 1 web panel, where customers could search by infected
IP, and stolen cookies, wallets, domains and passwords.

The unsealed [15]indictment (PDF) doesn't delve much into how
investigators tied Sokolovsky to Raccoon, but two sources close to the
investigation shared more information about that process on condition
of anonymity because they were not authorized to discuss the case
publicly.

According to those sources, U.S. authorities zeroed in on an
operational security mistake that the Raccoon developer made early on
in his posts to the crime forums, connecting a Gmail account for a
cybercrime forum identity used by the Raccoon developer ("Photix") to
an Apple iCloud account belonging to Sokolovsky. For example, the
indictment includes a photo that investigators subpoenaed from
Sokolovsky's iCloud account that shows him posing with several stacks
of bundled cash.

A selfie pulled from Mark Sokolovsky's iCloud account. Image: USDOJ.

When Russia invaded Ukraine in late February 2022, Sokolovsky was
living in Kharkiv, a city in northeast Ukraine that would soon come
under heavy artillery bombardment from Russian forces. Authorities
monitoring Sokolovsky's iCloud account had spent weeks watching him
shuttle between Kharkiv and the Ukrainian capital Kyiv, but on Mar. 18,
2022, his phone suddenly showed up in Poland.

Investigators learned from Polish border guards that Sokolovsky had
fled Ukraine in a Porsche Cayenne along with a young blond woman,
leaving his mother and other family behind. The image at the top of
this post was shared with U.S. investigators by Polish border security
officials, and it shows Sokolovsky leaving Poland for Germany on Mar.
18.

At the time, all able-bodied men of military age were required to
report for service to help repel the Russian invasion, and it would
have been illegal for Sokolovsky to leave Ukraine without permission.
But both sources said investigators believe Sokolovsky bribed border
guards to let them pass.

Authorities soon tracked Sokolovsky's phone through Germany and
eventually to The Netherlands, with his female companion helpfully
documenting every step of the trip on her Instagram account. Here is a
picture she posted of the two embracing upon their arrival in
Amsterdam's Dam Square:

Authorities in The Netherlands arrested Sokolovsky on Mar. 20, and
quickly seized control over the Raccoon Infostealer infrastructure.
Meanwhile, on March 25 the accounts that had previously advertised the
Raccoon Stealer malware on cybercrime forums announced the service was
closing down. The parting message to customers said nothing of an
arrest, and instead insinuated that the core members in charge of the
malware-as-a-service project had perished in the Russian invasion.

"Unfortunately, due to the `special operation,' we will have to close
our Raccoon Stealer project," the team announced Mar. 25. "Our team
members who were responsible for critical components of the product are
no longer with us. Thank you for this experience and time, for every
day, unfortunately everything, sooner or later, the end of the WORLD
comes to everyone."

Sokolovsky's extradition to the United States has been granted, but he
is appealing that decision. He faces one count of conspiracy to commit
computer fraud; one count of conspiracy to commit wire fraud; one count
of conspiracy to commit money laundering, and one count of aggravated
identity theft.

Sources tell KrebsOnSecurity that Sokolovsky has been consulting with
Houston, Tx.-based attorney F. Andino Reynal, the same lawyer who
represented Alex Jones in the recent defamation lawsuit against Jones
and his conspiracy theory website Infowars. Reynal was responsible for
what Jones himself referred to as [16]the "Perry Mason" moment of the
trial, wherein the plaintiff's lawyer revealed that Reynal had
inadvertently given them an entire digital copy of Jones's cell phone.
Mr. Reynal did not respond to requests for comment.

If convicted, Sokolovsky faces a maximum penalty of 20 years in prison
for the wire fraud and money laundering offenses, five years for the
conspiracy to commit computer fraud charge, and a mandatory consecutive
two-year term for the aggravated identity theft offense.

The Justice Department has set up a website -- [17]raccoon.ic3.gov --
that allows visitors to check whether their email address shows up in
the data collected by the Raccoon Stealer service.

This entry was posted on Monday 31st of October 2022 04:53 PM
[18]A Little Sunshine [19]Ne'er-Do-Well News
[20]Alex Jones [21]F. Andino Reynal [22]Mark Sokolovsky [23]Raccoon
Infostealer [24]Raccoon Stealer

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[25]<- Battle with Bots Prompts Mass Purge of Amazon, Apple Employee
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21 thoughts on "Accused `Raccoon' Malware Developer Fled Ukraine After
Russian Invasion"

1.
Robert.Walter [26]October 31, 2022
I have no sympathy for this self-centered sociopathic crook and
coward.
Once US justice is done with him, he should go back to stand for
cybercrime, draft evasion and bribery, plus whatever else applies.
And it will be appropriate and hood for him to spend a stretch in
prison at home.
Slava Ukraini ! And ï !
[27]Reply ->
2.
Reason V. [28]October 31, 2022
While I certainly can understand why this perp fled, it goes to
show that with everyone posting everything on the Internet, the
days of actually doing research and recon are gone. All that's
necessary now is really to just comb and put puzzles together by
checking IG, SC, FB, and other social media platforms.
People willingly post everything and anything these days...
[29]Reply ->
3.
Concerned [30]October 31, 2022
Look, the guy may be guilty as sin with this Racoon thing, however
having authorities follow my movements because I have a selfie with
"stacks of cash"? I want to have stacks of cash! Pile them high in
my room and let me swim in them! That is not a reason to begin
tracking someone. There has to be something else that someone is
not speaking about, Brian.
As to Ukraine, I have no love for Putin. But if he eliminates the
Nazi party that took over Ukraine in a coup in 2015, so much the
better. I know ethnic Russians that were under the recent Nazi
party fire-bombings in Western Ukraine and Crimea. It was horrid
what they were doing to their own citizens, for me it is on the
same level with the Syrian regime and Aleppo. I just want any
action to not harm any innocent civilians, just kill off the Nazis.
Unfortunately with all the money and military hardware pouring into
the Nazi's coffers, that is not going to happen. Welcome to the
topsy-turvey world where the West supports the Nazis and their new
holocaust programme, against a dictator - who I remind you has
nukes. And is being goaded into using them by a moronic idiot.
[31]Reply ->
1.
Vlad [32]October 31, 2022
Well, remember all Russians are Nazis.
They signed a peace treaty with Hitler, exterminated Jews, and
did nothing to help win WW II.
Putin is well known for his collection of Nazi memorabilia and
wearing an SS uniform at home.
[33]Reply ->
1.
mealy [34]November 1, 2022
When you have to use obviously false statements to prop
up a dictatorship,
you're a dork.
[35]Reply ->
2.
Shane T [36]November 2, 2022
Yes, and the earth is flat and Santa Claus is real
too.....
[37]Reply ->
2.
Amino [38]November 1, 2022
@Concerned
The article states the cash in hand photo was as a result of a
subpoena, which almost certainly means the subpoena included
all contents from this guy's iCloud account and the photo was
just part of the contents. The "investigators" were already on
his trail.
As for the Nazis in Ukraine, why would such Nazis allow
Zelensky, a Jew, to lead their country?
Perhaps they embrace DIE (Diversity, Inclusivity, Equity)
ideology more than their Nazism?
[39]Reply ->
3.
[40]Dmitry [41]November 1, 2022
There are no Nazi parties in Ukraine. Russia is actively
introducing this idea to the world community. Please, study
the material about it carefully.
[42]Reply ->
1.
GermanLeftie [43]November 1, 2022
It's so true. RTFM is such a clue. Just read the M as
inforMation and not just Manual :D. How could any
reading-able (including all getting to the core of the
information without own reading ability) person ever come
to the conclusion the nazi-story could be true.
Let me take a short and simple recap of information i
studied:
Putin~a [almost wrote Russia, but my believes are that
most of the Russians weren't into that] took Crimea
(never mentioned just one Nazi for that), Putin~a invaded
Ukraine couple of years later -> then Ukraine fires back.
Timeline is showing who is the aggressor. Naming the
action a `special operation' while forbidding the
`war'-narrative is more nazi-like then everything i saw
Ukraine is doing.
[44]Reply ->
4.
Vladumber [45]November 2, 2022
"I have no love for Putin. But" -phrase needs autoflagged.
"I have no love for Putin simps." -the autocorrected verbage.
[46]Reply ->
5.
Alex R [47]November 2, 2022
> But if he eliminates the Nazi party that took over Ukraine
in a coup in 2015
Hey, kremlebot, are they still paying you for posting this
nonsense? I didn't know the troll factory is still in
operation.
Brian, they're using your site to perpetuate disinformation
that creates social unrest out of thin air.
[48]Reply ->
6.
Realist [49]November 2, 2022
Question:
What's the exchange rate for rubles to USD?
[50]Reply ->
4.
The Sunshine State [51]October 31, 2022
Instead of fighting to protect his own country from invading
Russian forces , Sokolvsky wimped out and left the country like a
coward . What a loser !
Good to see that Apple threw him under the bus !
[52]Reply ->
5.
BaliRob [53]November 1, 2022
The Government link for racoon does not work here in Indonesia - is
there a suffix miss off it please
[54]Reply ->
6.
Brad Larkin [55]November 1, 2022
Outstanding coverage Brian. Well done.
[56]Reply ->
7.
Moonshot [57]November 1, 2022
People: "I use Apple and not Google because Apple respects my
privacy and won't let the feds have my data!"
Apple: Well, actually, they just need a warrant and we hand it
over, so....
Feds: And we can gin up a warrant for almost any reason. Try us(TM)
[58]Reply ->
1.
Realist [59]November 2, 2022
Spoken like a true conspiracy theorist who has no clue about
how Law Enforcement actually works.
Suuuurrre... we have nothing better to do than to "gin" up a
warrant.
I believe your tin foil hat is on too tight.
[60]Reply ->
8.
Geraldo Putter [61]November 1, 2022
It doesn't matter what country these depraved criminals are from,
Ukraine, Russia, Nigeria, whatever. If they are destroying people's
lives by stealing their life's savings, they deserve much more than
20 years in some gulag, maybe even capital punishment.
[62]Reply ->
9.
[63]cookie clicker [64]November 1, 2022
This in turn piece has a tendency to redeem considerable potential
customers. How you would support it? Getting this done offers a
cool uncommon perspective in issues. I suppose utilizing anything
at all legitimate possibly major to convey home elevators is the
most essential consideration.
[65]Reply ->
10.
Adam [66]November 2, 2022
That guy stole 50 million credentials, but somehow the comment
section is about Putin and talks it as if his worst crime is draft
evasion. Can you just stop plastering your f*cking Ukrainian
propaganda everywhere?
[67]Reply ->
11.
sergi tolstoy [68]November 2, 2022
Everyone is everything, since the beginning of time.
All colors , all ethnicities, all religions are all the same.
The human being , in a Matrix.
Enjoy your life, until the next One.
[69]Reply ->

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78. https://www.amazon.com/Spam-Nation-Organized-Cybercrime-Epidemic-ebook/dp/B00L5QGBL0/ref=dp_kinw_strp_1
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96. https://krebsonsecurity.com/category/sim-swapping/
97. https://krebsonsecurity.com/category/spam-nation/
98. https://krebsonsecurity.com/category/smallbizvictims/
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102. https://krebsonsecurity.com/category/web-fraud-2-0/
103. https://krebsonsecurity.com/2012/10/the-scrap-value-of-a-hacked-pc-revisited/
104. https://krebsonsecurity.com/2013/06/the-value-of-a-hacked-email-account/
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106. https://krebsonsecurity.com/2018/07/sextortion-scam-uses-recipients-hacked-passwords/
107. https://krebsonsecurity.com/2015/07/online-cheating-site-ashleymadison-hacked/
108. https://krebsonsecurity.com/2013/12/sources-target-investigating-data-breach/
109. https://krebsonsecurity.com/2020/11/trump-fires-security-chief-christopher-krebs/
110. https://krebsonsecurity.com/2022/06/why-paper-receipts-are-money-at-the-drive-thru/
111. https://krebsonsecurity.com/2013/12/cards-stolen-in-target-breach-flood-underground-markets/
112. https://krebsonsecurity.com/2013/05/reports-liberty-reserve-founder-arrested-site-shuttered/
113. https://krebsonsecurity.com/2015/08/was-the-ashley-madison-database-leaked/
114. https://krebsonsecurity.com/2021/01/ddos-guard-to-forfeit-internet-space-occupied-by-parler/
115. https://krebsonsecurity.com/2014/05/true-goodbye-using-truecrypt-is-not-secure/
116. https://krebsonsecurity.com/category/web-fraud-2-0/
117. https://krebsonsecurity.com/2014/03/are-credit-monitoring-services-worth-it/
118. https://krebsonsecurity.com/2014/05/antivirus-is-dead-long-live-antivirus/
119. https://krebsonsecurity.com/category/tax-refund-fraud/
120. https://krebsonsecurity.com/2014/06/peek-inside-a-professional-carding-shop/
121. https://krebsonsecurity.com/2013/09/crooks-hijack-retirement-funds-via-ssa-portal/
122. https://krebsonsecurity.com/2015/01/how-was-your-credit-card-stolen/
123. https://krebsonsecurity.com/2011/05/krebss-3-basic-rules-for-online-safety/

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