Employee Arrested for Cyber Extortion Against NJ Company

Former Employee of National Industrial Company Arrested for Attempted Data Extortion.Photo byMorristown Minute

Alleged Cyber Attack Targeted Somerset County-Based Industrial Company

SOMERSET COUNTY, N.J. - Daniel Rhyne, a 57-year-old resident of Kansas City, Missouri, has been arrested on charges related to an attempted data extortion campaign against his former employer, a U.S.-based industrial company headquartered in Somerset County, New Jersey. The U.S. Attorney for the District of New Jersey, Philip R. Sellinger, announced the arrest on August 27, 2024.

Rhyne, who previously worked as a core infrastructure engineer for the company, allegedly threatened to cause significant disruption to the company's computer systems unless a ransom of 20 Bitcoin, valued at approximately $750,000 at the time, was paid.

According to court documents, on November 25, 2023, Rhyne sent an extortionate email to the company’s employees, claiming that he had locked out or deleted all IT administrators from the company’s network, erased server backups, and would continue shutting down additional servers daily for 10 days if his demands were not met.

The investigation, conducted by the FBI under the direction of Special Agent in Charge James E. Dennehy in Newark and in collaboration with the FBI Kansas City office, revealed that Rhyne had gained unauthorized access to the company’s computer systems. He allegedly used his former administrative privileges to change passwords and schedule malicious tasks aimed at shutting down the company's network.

Rhyne was arrested in Missouri and released after his initial appearance in federal court in Kansas City.

Rhyne faces several serious charges, including extortion related to threats to damage a protected computer, intentional damage to a protected computer, and wire fraud. These charges carry significant penalties, with the most severe being up to 20 years in prison and a $250,000 fine.

The case is being prosecuted by Assistant U.S. Attorney Dong Joo Lee of the Cybercrime Unit in Newark. The charges against Rhyne are accusations, and he is presumed innocent until proven guilty in a court of law.

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