US Court Seizes $8.3M Crypto From Ransom Negotiator Angelo Martino
In brief
- Angelo Martino leaked client budgets and insurance limits to hackers while negotiating ransomware attacks for corporations
- U.S. District Court for Southern District of Florida ordered forfeiture of $8.37 million in crypto, properties, vehicles, and motorboats
- Martino received 70-month prison sentence and percentage payments in Bitcoin and XRP for facilitating extortion schemes
The Double Game
Large companies hired Martino as a senior executive during their most critical moments, when hackers linked to the BlackCat, also known as ALPHV, ransomware group encrypted corporate networks. His job was to negotiate ransom amounts. Instead, Martino weaponized his position.
The "diplomat" secretly leaked information to the hackers about his clients' actual budgets and the limits of their insurance policies. This intelligence gave the extortion ring leverage to demand higher payments. In return, Martino received a fixed percentage in Bitcoin and XRP for assisting with the extortion.
His scheme unraveled in federal court.
Forfeiture and Prison
The U.S. District Court for the Southern District of Florida issued a forfeiture order that stripped Martino of the proceeds. The court ordered the forfeiture of two luxury residential properties, premium vehicles, and motorboats alongside his digital holdings. Martino spread his cryptocurrency holdings across several blockchain ecosystems including XRP and Bitcoin, but diversification didn't protect him from civil asset seizure.
Martino was convicted and sentenced to 70 months in federal prison. The case underscores how cryptocurrency holdings—even when spread across multiple chains—remain subject to court-ordered forfeiture once criminal conduct is proven.
