Security Experts:

Briton Pleads Guilty to Running Malware Services

Goncalo Esteves, a 24-year-old man from the United Kingdom, has pleaded guilty to charges related to creating and running services designed to help cybercriminals develop malware that would not be detected by antivirus products.

One of Esteves’ services was a website called Created in February 2015, the site allowed cybercriminals to learn if their malware samples would be detected by antiviruses from various vendors. When it was shut down several months later, the service claimed that it had been used to conduct 1.2 million scans.

The man, known online as KillaMuvz also created Cryptex, a tool that allowed malware developers to encrypt their files in an effort to make them more difficult to detect. Cryptex had been available since October 2011, but it had been improved over time.

Use of the reFUD and Cryptex tools was not free. For example, users had to pay $8 per month for the lite version of Cryptex or $90 for a lifetime license for Cryptex Reborn, which experts described as highly sophisticated.

Esteves and a woman were arrested in November 2015 as a result of an investigation conducted by Trend Micro and the UK’s National Crime Agency (NCA). Both services were shut down around the time of their arrest.

A local news site reported in March 2017 that Esteves had pleaded not guilty to four charges of computer misuse and one charge of obtaining money under the Proceeds of Crime Act 2002. The man insisted at the time that his software was designed for legitimate use.

However, the NCA announced this week that Esteves has pleaded guilty to two computer misuse charges and one count of money laundering. He will be sentenced on February 12.

Authorities said Esteves received roughly £32,000 ($44,000) for his services between 2011 and 2015. However, this only represents payments made through PayPal; the actual profit is likely much higher since he also accepted payment in bitcoins and Amazon vouchers.

Related: Anti-Detection Tool Users Targeted in International Police Operation

Related: British Researcher Pleads Not Guilty to Creating Malware

Related: Briton Pleads Guilty to Mirai Attacks in German Court

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Eduard Kovacs (@EduardKovacs) is a contributing editor at SecurityWeek. He worked as a high school IT teacher for two years before starting a career in journalism as Softpedia’s security news reporter. Eduard holds a bachelor’s degree in industrial informatics and a master’s degree in computer techniques applied in electrical engineering.