Ransomware Gang Threatens KADOKAWA Corporation with Data Leak – Will They Pay Up?

Tokyo, Japan – The recent cyberattack on the Japanese media conglomerate KADOKAWA by the BlackSuit ransomware gang has sparked concerns about the security of sensitive data belonging to the company. KADOKAWA, known for its operations in film, publishing, and gaming industries, including FromSoftware, the creator of Elden Ring, reported service outages on multiple websites following the attack on June 8.

The cyberattack affected various companies under the KADOKAWA Group, with operations hosted in the same data center being encrypted by ransomware. One of the impacted platforms was the popular Japanese video-sharing site Niconico. As updates from KADOKAWA revealed the ongoing impact of the cyberattack, efforts to restore operations and improve network security have been prioritized.

Despite acknowledging the ransomware attack, KADOKAWA had not disclosed the identity of the attackers responsible. However, the BlackSuit ransomware gang came forward to claim responsibility for the breach and threatened to release stolen data if a ransom is not paid by July 1. The leaked data includes sensitive information such as contacts, confidential documents, employee data, business plans, and financial records.

Operating since May 2023, the BlackSuit ransomware operation emerged as a rebranded version of the Royal ransomware operation. Believed to have ties to the now-defunct Conti cybercrime syndicate, the ransomware operators have been linked to numerous attacks targeting organizations worldwide. Notably, the FBI and CISA issued warnings about the group’s involvement in cyberattacks on over 350 organizations, with demands exceeding $275 million in ransom payments.

In a recent development, the BlackSuit ransomware gang orchestrated a cyberattack on CDK Global, causing widespread disruptions to car dealerships across North America. The incident underscores the growing threat posed by organized cybercriminal groups utilizing ransomware to extort significant sums from companies. As investigations into the KADOKAWA cyberattack continue, cybersecurity experts emphasize the importance of robust security measures to safeguard against similar incidents in the future.