Van Nuys man pleads guilty to federal computer spyware charge

A Van Nuys man pleaded guilty Thursday to scheming to market and sell malware that gave purchasers control over computers and enabled them to steal victims’ private communications, login credentials and other personal information.

Edmond Chakhmakhchyan, 25, entered his plea to a federal conspiracy charge for advertising a device as an interception device, transmitting a code to intentionally cause damage to protected computers and to intentionally access a computer to obtain information, according to the U.S. Attorney’s Office.

U.S. District Judge Hernán D. Vera set sentencing for Aug. 7, at which time Chakhmakhchyan would face up to five years behind bars, prosecutors said.

The indictment filed in Los Angeles federal court last year describes an agreement between the malware’s creator and Chakhmakhchyan in which the defendant would post ads for the Hive remote access trojan, or RAT, on the Hack Forums website, accept Bitcoin payments for licenses to use the malware and provide customer service to those who purchased the licenses.

Customers purchasing the spyware would transmit Hive RAT to protected computers and gain unauthorized control over and access to those devices, allowing the RAT purchaser to close or disable programs, browse files, record keystrokes, access incoming and outgoing communications and steal passwords and other credentials for bank accounts and cryptocurrency wallets, all without the victims’ knowledge or permission, according to the indictment.

Chakhmakhchyan began working with the creator of the Hive RAT, previously known as “Firebird,” about five years ago and advertised online the RAT’s many features, federal prosecutors said.

After advertising the Hive RAT, Chakhmakhchyan exchanged electronic messages with purchasers and explained to one buyer that the malware allowed the Hive RAT user to access another person’s computer without that person knowing about the access, the indictment states.

Chakhmakhchyan also sold a license for the Hive RAT to an undercover employee of a law enforcement agency, according to the U.S. Attorney’s Office.