Reddit Hackers Demand $4.5 million and API Pricing Changes

Back in February, Reddit revealed it had been the victim of a targeted phishing scheme that exposed internal docs, dashboards, code and contracts, along with some advertisers’ and current and former employees’ information. Ransomware gang BlackCat, also known as ALPHV, has just taken responsibility for the hack and claims to have 80GB of compressed data. Now the Reddit Hackers demand $4.5 million and reverse API price increases if the company does not want its users’ data to be revealed.

BlackCat captured the information through a scheme that saw employees receive “plausible-sounding prompts” to visit a website designed just like Reddit’s intranet gateway. One individual fell for the trick, allowing hackers to steal their login details and second-factor tokens. The person then self-reported their mistake. Then it is believed the security breach didn’t compromise Reddit users’ personal information.

Reddit Hackers Demand $4.5 Million and API Pricing Changes

Now, months later, the hackers have publicly revealed themselves in the midst of site-wide protests against API price hikes. The increased cost is forcing popular third-party apps like Narwhal and Apollo to shut down. Apollo creator Christian Selig claimed he would need to spend $20 million per year to stay in business. Developers also fear losing third-party apps will lead to more censoring and less opportunity for growing ad revenue.

A massive protest saw up to 8,000 subreddits go dark at one time. However, the results are mixed. “These people who are mad, they’re mad because they used to get something for free, and now it’s going to be not free,” Reddit CEO Steve Hoffman said in an interview. He has also suggested making it easier to remove moderators who aren’t making “popular” decisions. Though Reddit shows no signs of reversing its decision, some advertisers have paused on the site while blackouts continue.

It is unclear at this point, whether the company will meet the demands or not. BlackCat claims Reddit ignored its past two contact attempts, in April and June. Let’s see whether the public ultimatum will make a difference or not.

See Also: Reddit Gets TikTok-Like Feature To Separate Video Feed