Ukrainian businessman Brodsky accused in funding the international hacker group

Mikhail Brodsky, a businessman from Ukraine was allegedly aiding international hacker group, Izvestia reports based on own sources. Brodsky, a former chief of the State committee for supporting business venues may be involved in funding the group behind the ‘xDedic’ site. xDedic was kind of marketplace for buying and selling root access to hacked servers.

Izvestia states that Brodsky is tied to the hacker group via Nijolay Melnichenko, ex-major of State Security Command of Ukraine. He is US resident now.

Official briefing of the Department of the Cyberpolice of Ukraine states that Jan 28 Ukrainian, Belgian, Europol and Eurojstice, and American authorities have uncovered the criminal hacker gang. This gang was involved in computational infrastructure intrusion. They intruded private, commercial and governmental computer system, gained privileged access and sold the access credential via their xDedic dark net marketplace.

One of gang activities was encyphering vital user information and demanding ransom for it – as with encoding viruses.

The attack technique used by the gang is simple. They used password guessing attacks known as ‘brute force hacking’. After the successful attack they gained total control over the target system including access to the commercial and sensitive data, the Cyberpolice reports.

Authorities report that group behind the xDedic was consisting of four Ukrainian citizens. All of them are identified and located, Sergey Knyazev, the head of police said. According to his statement the perpetrators sold an awful amount of sensitive information which may serve as a starting point for the further criminal activities, including ransom.

According to Izvestia source this activity was overviewed by ex-major of State Security Service Nikolay Melnichenko. He is known in his home country as officer who wiretapped his own president and other political figures. The same source state that Mikhail Brodsky is accomplice of the group.

“Do you remember? Last year Melnichenko told that he has opened the transportation business in USA with the help of Mikhail Brodsky? Thanks to Mikhail [Brodsky] Melinichenko is nearly a multimillionaire. But Brodsky never gives away money just for fun. He credited major Melnichenko to use his espionage ties and to get into the hacking business. Melnichenko succeeded and that’s why Brodsky does not demand the money back. He got hundreds of thousands in crypto every month as a investing return” – the Izvestia source tells.

The malicious software was set by hacker group to target servers in Europe, USA and Canada.

“This transportation business of which Melnichenko told the press is only a cover up”, a source speculates. “Do you really suppose that the man who spied half of his life, without any experience and practice, was able to create a real US business while he even didn’t knew English well? In the US Melnichenko does the same he has done in Ukraine: he is gathering the data. He is sponsored by Brodsky while the data is resold. Brodsky is getting his premium” – the source told.

Mikhail Brodsky has his own media, ‘Obozrevatel’. It is steadily in the top of the most popular sites in Ukraine. But media experts say that way too often ‘Obozrevatel’ publishes pieces not conforming to the journalism standards. It is known for fake news. Brodsky uses his news outlet to blackmail politic figures and businessmen and takes down the fake news for substantial ransom.

In September 2018 Nikolay Melnichenko speaking to ZIK television said that he has developed a business in the US and it is quite successful. While speaking about the sources for the initial financing he told ZIK that he has friends in Ukraine. Mikhail Brodsky, ex-chief of the Business Bureau of Ukraine, gave him money, ‘some part as a gift, some part as an investment’. Melnichenko assures that those funds were transferred legally.

Mikhail Brodsky is one of owners of the Kiev River port, he also develops an multistory housing community at a Dnepr peninsula. Ukrainian journalists accuse him in illegal sand digging. It is, according to them, what for the River Port is needed. The complex on the peninsula was started without the necessary permissions.

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