Missouri Engineer Arrested for Attempting $750K Bitcoin Extortion Scheme

Failed Extortion Attempt

A 57-year-old man from Missouri, Daniel Rhyne, has been arrested for attempting to extort his former employer for $750,000 in Bitcoin.

Charges Filed

Rhyne faces multiple charges including extortion, intentional damage to a protected computer, and wire fraud. He was arrested on August 27, 2024, after threatening an unnamed industrial company based in Somerset County, New Jersey, where he previously worked as a core infrastructure engineer.

Extortion Email

Court documents reveal that employees received an extortion email stating that all IT administrators had been locked out, data backups deleted, and that 40 servers would be shut down daily unless a ransom of 20 Bitcoin was paid.

Unauthorized Access

The investigation discovered that Rhyne gained unauthorized access to the company’s systems by remotely accessing the administrator account. He allegedly scheduled tasks to change administrator passwords and shut down servers without permission.

Technical Manipulation

Rhyne reportedly used Windows net user and Sysinternals Utilities' PsPasswd tool to modify accounts and change passwords to "TheFr0zenCrew!". Authorities tracked his actions back to his company-issued laptop.

Potential Penalties

If convicted, Rhyne faces a maximum of 35 years in prison and a $750,000 fine for all charges.