[cryptography] [Cryptography] USG asks for time served (7 months) as Sabu's sentence

ianG iang at iang.org
Sun May 25 08:07:44 EDT 2014

On 24/05/2014 15:12 pm, John Young wrote:
> USG asks for time served (7 months) as Sabu's sentence for
> "extraordinary cooperation" with FBI to rat, admit, aid.
> http://cryptome.org/2014/05/monsegur-029-030.pdf

Interesting!  Aside from the human interest aspects of the story, the
FBI calculates some damages (blue page 8, edited to drop non-damages

In the PSR, Probation correctly calculates that the defendant’s base
offense level is 7 pursuant to U.S.S.G. §2B1.1(a)(1) and correctly
applies a 22-level enhancement in light of a loss amount between $20
million and $50 million [4]; a 6-level enhancement given that the
offense involved more than 250 victims;

4 This loss figure includes damages caused not only by hacks in which
Monsegur personally and directly participated, but also damages from
hacks perpetrated by Monsegur’s co- conspirators in which he did not
directly participate. Monsegur’s actions personally and directly caused
between $1,000,000 and $2,500,000 in damages.

That last number range of $1m to 2.5m is interesting, and can be
contrasted to his 10 direct victims (listed on blue pages 5-6) exploited
over a 1 year period.

One could surmise that this isn't an optimal solution.  E.g.,
hypothetically, if the 10 victims were to pay each a tenth of their
losses, they'd raise a salary of 100-250k and put perp to productive
work, and we'd all be in net profit [0].

Obviously this didn't efficiently solve in society due to information
problems.  LulzEconSec, anyone?


[0] additional comments on the 'profit' side:
blue page 13:  "Although difficult to quantify, it is likely that
Monsegur’s actions prevented at least millions of dollars in loss to
these victims."
blue page 16: "Through Monsegur’s cooperation, the FBI was able to
thwart or mitigate at least 300 separate hacks. The amount of loss
prevented by Monsegur’s actions is difficult to fully quantify, but even
a conservative estimate would yield a loss prevention figure in the
millions of dollars."

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