Paypal Hackers Plead Guilty in Court

A group of online criminals that hacked Paypal accounts has pleaded guilty in court.

On December 2010, after a large amount of confidential documents were disclosed in WikiLeaks, PayPal froze its accounts so the site could no longer receive donations, especially from Wau Holland Foundation, an organization who backs up the site. According to Google Wallet and Payments VP Osama Bedier, Paypal blocked WikiLeaks payments in compliance to the U.S government request after declaring the organization “illegal.”

PayPal's denial to process payments to WikiLeaks angered people behind the disclosure and as a result, the "hacktivists" harassed the global e-commerce company by launching what they call “Operation Payback” that results in the company's loss amounting to £3.5 million ($5.72 billion).

There were other accounts such as MasterCard and other recording industry bodies were also shut down.

“You’ve tried to bite the Anonymous hand. You angered the hive and now you are being stung,” the note displayed on the hacked sites.

Prosecutor Samit Patel said the case showed the ugly side of Internet.

Christopher Weatherhead, 22, of Holly Road, Northampton, allegedly masterminded the cyber attack, while Ashley Rhodes, 28, of Bolton Crescent, Camberwell, south London, Peter Gibson, 24, of Castletown Road, Hartlepool, and an 18-year-old, who cannot be named, have already admitted their roles in the conspiracy.

As Reuters reported, the group of defendants, composed of 11 men and two women, pleaded guilty on Thursday in a California federal court. Three of them agreed to misdemeanor charges while 10 of them pleaded guilty to a felony charge. If the 10 accused do not go against terms of their agreement before sentencing, the case will be changed to misdemeanor charges next year.

Daily Mail disclosed other Paypal accounts affected: the British Phonographic Industry (BPI) which lost a total of £3,996 ($6,531) for online security plus hundreds of pounds in other costs. Four websites managed by the Ministry of Sound were also attacked last October 2010 and lost roughly £9,000 ($14,709). In November 2010, the International Federation of the Phonographic Industry had a much bigger lost amounting to more than £20,000 ($32,700) because its site was down for nine days after being hacked.

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