Stay Ahead, Stay ONMINE

Hackers made death threats against this security researcher. Big mistake.

The threats started in spring.  In April 2024, a mysterious someone using the online handles “Waifu” and “Judische” began posting death threats on Telegram and Discord channels aimed at a cybersecurity researcher named Allison Nixon.  “Alison [sic] Nixon is gonna get necklaced with a tire filled with gasoline soon,” wrote Waifu/Judische, both of which are words with offensive connotations. “Decerebration is my fav type of brain death, thats whats gonna happen to alison Nixon.”  It wasn’t long before others piled on. Someone shared AI-generated nudes of Nixon. These anonymous personas targeted Nixon because she had become a formidable threat: As chief research officer at the cyber investigations firm Unit 221B, named after Sherlock Holmes’s apartment, she had built a career tracking cybercriminals and helping get them arrested. For years she had lurked quietly in online chat channels or used pseudonyms to engage with perpetrators directly while piecing together clues they’d carelessly drop about themselves and their crimes. This had helped her bring to justice a number of cybercriminals—especially members of a loosely affiliated subculture of anarchic hackers who call themselves the Com. But members of the Com aren’t just involved in hacking; some of them also engage in offline violence against researchers who track them. This includes bricking (throwing a brick through a victim’s window) and swatting (a dangerous type of hoax that involves reporting a false murder or hostage situation at someone’s home so SWAT teams will swarm it with guns drawn). Members of a Com offshoot known as 764 have been accused of even more violent acts—including animal torture, stabbings, and school shootings—or of inciting others in and outside the Com to commit these crimes. Nixon started tracking members of the community more than a decade ago, when other researchers and people in law enforcement were largely ignoring them because they were young—many in their teens. Her early attention allowed her to develop strategies for unmasking them. Ryan Brogan, a special agent with the FBI, says Nixon has helped him and colleagues identify and arrest more than two dozen members of the community since 2011, when he first began working with her, and that her skills in exposing them are unparalleled. “If you get on Allison’s and my radar, you’re going [down]. It’s just a matter of time,” he says. “No matter how much digital anonymity and tradecraft you try to apply, you’re done.” Though she’d done this work for more than a decade, Nixon couldn’t understand why the person behind the Waifu/Judische accounts was suddenly threatening her. She had given media interviews about the Com—most recently on 60 Minutes—but not about her work unmasking members to get them arrested, so the hostility seemed to come out of the blue. And although she had taken an interest in the Waifu persona in years past for crimes he boasted about committing, he hadn’t been on her radar for a while when the threats began, because she was tracking other targets.  Now Nixon resolved to unmask Waifu/Judische and others responsible for the death threats—and take them down for crimes they admitted to committing. “Prior to them death-threatening me, I had no reason to pay attention to them,” she says.  Com beginnings Most people have never heard of the Com, but its influence and threat are growing. It’s an online community comprising loosely affiliated groups of, primarily, teens and twentysomethings in North America and English-speaking parts of Europe who have become part of what some call a cybercrime youth movement.  International laws and norms, and fears of retaliation, prevent states from going all out in cyber operations. That doesn’t stop the anarchic Com. Over the last decade, its criminal activities have escalated from simple distributed denial-of-service (DDoS) attacks that disrupt websites to SIM-swapping hacks that hijack a victim’s phone service, as well as crypto theft, ransomware attacks, and corporate data theft. These crimes have affected AT&T, Microsoft, Uber, and others. Com members have also been involved in various forms of sextortion aimed at forcing victims to physically harm themselves or record themselves doing sexually explicit activities. The Com’s impact has also spread beyond the digital realm to kidnapping, beatings, and other violence.  One longtime cybercrime researcher, who asked to remain anonymous because of his work, says the Com is as big a threat in the cyber realm as Russia and China—for one unusual reason. “There’s only so far that China is willing to go; there’s only so far that Russia or North Korea is willing to go,” he says, referring to international laws and norms, and fears of retaliation, that prevent states from going all out in cyber operations. That doesn’t stop the anarchic Com, he says. FRANZISKA BARCZYK “It is a pretty significant threat, and people tend to … push it under the rug [because] it’s just a bunch of kids,” he says. “But look at the impact [they have].” Brogan says the amount of damage they do in terms of monetary losses “can become staggering very quickly.” There is no single site where Com members congregate; they spread across a number of web forums and Telegram and Discord channels. The group follows a long line of hacking and subculture communities that emerged online over the last two decades, gained notoriety, and then faded or vanished after prominent members were arrested or other factors caused their decline. They differed in motivation and activity, but all emerged from “the same primordial soup,” says Nixon. The Com’s roots can be traced to the Scene, which began as a community of various “warez” groups engaged in pirating computer games, music, and movies. When Nixon began looking at the Scene, in 2011, its members were hijacking gaming accounts, launching DDoS attacks, and running booter services. (DDoS attacks overwhelm a server or computer with traffic from bot-controlled machines, preventing legitimate traffic from getting through; booters are tools that anyone can rent to launch a DDoS attack against a target of choice.) While they made some money, their primary goal was notoriety. This changed around 2018. Cryptocurrency values were rising, and the Com—or the Community, as it sometimes called itself—emerged as a subgroup that ultimately took over the Scene. Members began to focus on financial gain—cryptocurrency theft, data theft, and extortion. The pandemic two years later saw a surge in Com membership that Nixon attributes to social isolation and the forced movement of kids online for schooling. But she believes economic conditions and socialization problems have also driven its growth. Many Com members can’t get jobs because they lack skills or have behavioral issues, she says. A number who have been arrested have had troubled home lives and difficulty adapting to school, and some have shown signs of mental illness. The Com provides camaraderie, support, and an outlet for personal frustrations. Since 2018, it has also offered some a solution to their money problems. Loose-knit cells have sprouted from the community—Star Fraud, ShinyHunters, Scattered Spider, Lapsus$—to collaborate on clusters of crime. They usually target high-profile crypto bros and tech giants and have made millions of dollars from theft and extortion, according to court records.  But dominance, power, and bragging rights are still motivators, even in profit operations, says the cybercrime researcher, which is partly why members target “big whales.” “There is financial gain,” he says, “but it’s also [sending a message that] I can reach out and touch the people that think they’re untouchable.” In fact, Nixon says, some members of the Com have overwhelming ego-driven motivations that end up conflicting with their financial motives. “Often their financial schemes fall apart because of their ego, and that phenomenon is also what I’ve made my career on,” she says. The hacker hunter emerges Nixon has straight dark hair, wears wire-rimmed glasses, and has a slight build and bookish demeanor that, on first impression, could allow her to pass for a teen herself. She talks about her work in rapid cadences, like someone whose brain is filled with facts that are under pressure to get out, and she exudes a sense of urgency as she tries to make people understand the threat the Com poses. She doesn’t suppress her happiness when someone she’s been tracking gets arrested. In 2011, when she first began investigating the communities from which the Com emerged, she was working the night shift in the security operations center of the security firm SecureWorks. The center responded to tickets and security alerts emanating from customer networks, but Nixon coveted a position on the company’s counter-threats team, which investigated and published threat-intelligence reports on mostly state-sponsored hacking groups from China and Russia. Without connections or experience, she had no path to investigative work. But Nixon is an intensely curious person, and this created its own path. Allison Nixon is chief research officer at the cybersecurity investigations firm Unit 221B, where she tracks cybercriminals and helps bring them to justice.YLVA EREVALL Where the threat team focused on the impact hackers had on customer networks—how they broke in, what they stole—Nixon was more interested in their motivations and the personality traits that drove their actions. She assumed there must be online forums where criminal hackers congregated, so she googled “hacking forums” and landed on a site called Hack Forums. “It was really stupid simple,” she says. She was surprised to see members openly discussing their crimes there. She reached out to someone on the SecureWorks threat team to see if he was aware of the site, and he dismissed it as a place for “script kiddies”—a pejorative term for unskilled hackers. This was a time when many cybersecurity pros were shifting their focus away from cybercrime to state-sponsored hacking operations, which were more sophisticated and getting a lot of attention. But Nixon likes to zig where others zag, and her colleague’s dismissiveness fueled her interest in the forums. Two other SecureWorks colleagues shared that interest, and the three studied the forums during downtime on their shifts. They focused on trying to identify the people running DDoS booters.  What Nixon loved about the forums was how accessible they were to a beginner like herself. Threat-intelligence teams require privileged access to a victim’s network to investigate breaches. But Nixon could access everything she needed in the public forums, where the hackers seemed to think no one was watching. Because of this, they often made mistakes in operational security, or OPSEC—letting slip little biographical facts such as the city where they lived, a school they attended, or a place they used to work. These details revealed in their chats, combined with other information, could help expose the real identities behind their anonymous masks.  “It was a shock to me that it was relatively easy to figure out who [they were],” she says.  She wasn’t bothered by the immature boasting and petty fights that dominated the forums. “A lot of people don’t like to do this work of reading chat logs. I realize that this is a very uncommon thing. And maybe my brain is built a little weird that I’m willing to do this,” she says. “I have a special talent that I can wade through garbage and it doesn’t bother me.”  Nixon soon realized that not all the members were script kiddies. Some exhibited real ingenuity and “powerful” skills, she says, but because they were applying these to frivolous purposes—hijacking gamer accounts instead of draining bank accounts—researchers and law enforcement were ignoring them. Nixon began tracking them, suspecting that they would eventually direct their skills at more significant targets—an intuition that proved to be correct. And when they did, she had already amassed a wealth of information about them.  She continued her DDoS research for two years until a turning point in 2013, when the cybersecurity journalist Brian Krebs, who made a career tracking cybercriminals, got swatted.  About a dozen people from the security community worked with Krebs to expose the perpetrator, and Nixon was invited to help. Krebs sent her pieces of the puzzle to investigate, and eventually the group identified the culprit (though it would take two years for him to be arrested). When she was invited to dinner with Krebs and the other investigators, she realized she’d found her people. “It was an amazing moment for me,” she says. “I was like, wow, there’s all these like-minded people that just want to help and are doing it just for the love of the game, basically.” Staying one step ahead It was porn stars who provided Nixon with her next big research focus—one that underscored her skill at spotting Com actors and criminal trends in their nascent stages, before they emerged as major threats. In 2018, someone was hijacking the social media accounts of certain adult-film stars and using those accounts to blast out crypto scams to their large follower bases. Nixon couldn’t figure out how the hackers had hijacked the social media profiles, but she promised to help the actors regain access to their accounts if they agreed to show her the private messages the hackers had sent or received during the time they controlled them. These messages led her to a forum where members were talking about how they stole the accounts. The hackers had tricked some of these actors into disclosing the mobile phone numbers of others. Then they used a technique called SIM swapping to reset passwords for social media accounts belonging to those other stars, locking them out.  In SIM swapping, fraudsters get a victim’s phone number assigned to a SIM card and phone they control, so that calls and messages intended for the victim go to them instead. This includes one-time security codes that sites text to account holders to verify themselves when accessing their account or changing its password. In some of the cases involving the porn stars, the hackers had manipulated telecom workers into making the SIM swaps for what they thought were legitimate reasons, and in other cases they bribed the workers to make the change. The hackers were then able to alter the password on the actors’ social media accounts, lock out the owners, and use the accounts to advertise their crypto scams.  SIM swapping is a powerful technique that can be used to hijack and drain entire cryptocurrency and bank accounts, so Nixon was surprised to see the fraudsters using it for relatively unprofitable schemes. But SIM swapping had rarely been used for financial fraud at that point, and like the earlier hackers Nixon had seen on Hack Forums, the ones hijacking porn star accounts didn’t seem to grasp the power of the technique they were using. Nixon suspected that this would change and SIM swapping would soon become a major problem, so she shifted her research focus accordingly. It didn’t take long for the fraudsters to pivot as well. Nixon’s skill at looking ahead in this way has served her throughout her career. On multiple occasions a hacker or hacking group would catch her attention—for using a novel hacking approach in some minor operation, for example—and she’d begin tracking their online posts and chats in the belief that they’d eventually do something significant with that skill.  They usually did. When they later grabbed headlines with a showy or impactful operation, these hackers would seem to others to have emerged from nowhere, sending researchers and law enforcement scrambling to understand who they were. But Nixon would already have a dossier compiled on them and, in some cases, had unmasked their real identity as well. Lizard Squad was an example of this. The group burst into the headlines in 2014 and 2015 with a series of high-profile DDoS campaigns, but Nixon and colleagues at the job where she worked at the time had already been watching its members as individuals for a while. So the FBI sought their assistance in identifying them. “The thing about these young hackers is that they … keep going until they get arrested, but it takes years for them to get arrested,” she says. “So a huge aspect of my career is just sitting on this information that has not been actioned [yet].” It was during the Lizard Squad years that Nixon began developing tools to scrape and record hacker communications online, though it would be years before she began using these concepts to scrape the Com chatrooms and forums. These channels held a wealth of data that might not seem useful during the nascent stage of a hacker’s career but could prove critical later, when law enforcement got around to investigating them; yet the contents were always at risk of being deleted by Com members or getting taken down by law enforcement when it seized websites and chat channels. Nixon’s work is unique because she engages with the actors in chat spaces to draw out information from them that “would not be otherwise normally available.” Over several years, she scraped and preserved whatever chatrooms she was investigating. But it wasn’t until early 2020, when she joined Unit 221B, that she got the chance to scrape the Telegram and Discord channels of the Com. She pulled all of this data together into a searchable platform that other researchers and law enforcement could use. The company hired two former hackers to help build scraping tools and infrastructure for this work; the result is eWitness, a community-driven, invitation-­only platform. It was initially seeded only with data Nixon had collected after she arrived at Unit 221B, but has since been augmented with data that other users of the platform have scraped from Com social spaces as well, some of which doesn’t exist in public forums anymore. Brogan, of the FBI, says it’s an incredibly valuable tool, made more so by Nixon’s own contributions. Other security firms scrape online criminal spaces as well, but they seldom share the content with outsiders, and Brogan says Nixon’s work is unique because she engages with the actors in chat spaces to draw out information from them that “would not be otherwise normally available.”  The preservation project she started when she got to Unit 221B could not have been better timed, because it coincided with the pandemic, the surge in new Com membership, and the emergence of two disturbing Com offshoots, CVLT and 764. She was able to capture their chats as these groups first emerged; after law enforcement arrested leaders of the groups and took control of the servers where their chats were posted, this material went offline. CVLT—pronounced “cult”—was reportedly founded around 2019 with a focus on sextortion and child sexual abuse material. 764 emerged from CVLT and was spearheaded by a 15-year-old in Texas named Bradley Cadenhead, who named it after the first digits of his zip code. Its focus was extremism and violence.  In 2021, because of what she observed in these groups, Nixon turned her attention to sextortion among Com members. The type of sextortion they engaged in has its roots in activity that began a decade ago as “fan signing.” Hackers would use the threat of doxxing to coerce someone, usually a young female, into writing the hacker’s handle on a piece of paper. The hacker would use a photo of it as an avatar on his online accounts—a kind of trophy. Eventually some began blackmailing victims into writing the hacker’s handle on their face, breasts, or genitals. With CVLT, this escalated even further; targets were blackmailed into carving a Com member’s name into their skin or engaging in sexually explicit acts while recording or livestreaming themselves. During the pandemic a surprising number of SIM swappers crossed into child sexual abuse material and sadistic sextortion, according to Nixon. She hates tracking this gruesome activity, but she saw an opportunity to exploit it for good. She had long been frustrated at how leniently judges treated financial fraudsters because of their crimes’ seemingly nonviolent nature. But she saw a chance to get harsher sentences for them if she could tie them to their sextortion and began to focus on these crimes.  At this point, Waifu still wasn’t on her radar. But that was about to change. Endgame Nixon landed in Waifu’s crosshairs after he and fellow members of the Com were involved in a large hack involving AT&T customer call records in April 2024. Waifu’s group gained access to dozens of cloud accounts with Snowflake, a company that provides online data storage for customers. One of those customers had more than 50 billion call logs of AT&T wireless subscribers stored in its Snowflake account.  They tried to re-extort the telecom, threatening on social media to leak the records. They tagged the FBI in the post. “It’s like they were begging to be investigated,” says Nixon. Among the subscriber records were call logs for FBI agents who were AT&T customers. Nixon and other researchers believe the hackers may have been able to identify the phone numbers of agents through other means. Then they may have used a reverse-lookup program to identify the owners of phone numbers that the agents called or that called them and found Nixon’s number among them. This is when they began harassing her. But then they got reckless. They allegedly extorted nearly $400,000 from AT&T in exchange for promising to delete the call records they’d stolen. Then they tried to re-extort the telecom, threatening on social media to leak the records they claimed to have deleted if it didn’t pay more. They tagged the FBI in the post. “It’s like they were begging to be investigated,” says Nixon. The Snowflake breaches and AT&T records theft were grabbing headlines at the time, but Nixon had no idea her number was in the stolen logs or that Waifu/Judische was a prime suspect in the breaches. So she was perplexed when he started taunting and threatening her online. FRANZISKA BARCZYK Over several weeks in May and June, a pattern developed. Waifu or one of his associates would post a threat against her and then post a message online inviting her to talk. She assumes now that they believed she was helping law enforcement investigate the Snowflake breaches and hoped to draw her into a dialogue to extract information from her about what authorities knew. But Nixon wasn’t helping the FBI investigate them yet. It was only after she began looking at Waifu for the threats that she became aware of his suspected role in the Snowflake hack. It wasn’t the first time she had studied him, though. Waifu had come to her attention in 2019 when he bragged about framing another Com member for a hoax bomb threat and later talked about his involvement in SIM-swapping operations. He made an impression on her. He clearly had technical skills, but Nixon says he also often appeared immature, impulsive, and emotionally unstable, and he was desperate for attention in his interactions with other members. He bragged about not needing sleep and using Adderall to hack through the night. He was also a bit reckless about protecting personal details. He wrote in private chats to another researcher that he would never get caught because he was good at OPSEC, but he also told the researcher that he lived in Canada—which turned out to be true. Nixon’s process for unmasking Waifu followed a general recipe she used to unmask Com members: She’d draw a large investigative circle around a target and all the personas that communicated with that person online, and then study their interactions to narrow the circle to the people with the most significant connections to the target. Some of the best leads came from a target’s enemies; she could glean a lot of information about their identity, personality, and activities from what the people they fought with online said about them. “The enemies and the ex-girlfriends, generally speaking, are the best [for gathering intelligence on a suspect],” she says. “I love them.” While she was doing this, Waifu and his group were reaching out to other security researchers, trying to glean information about Nixon and what she might be investigating. They also attempted to plant false clues with the researchers by dropping the names of other cybercriminals in Canada who could plausibly be Waifu. Nixon had never seen cybercriminals engage in counterintelligence tactics like this. Amid this subterfuge and confusion, Nixon and another researcher working with her did a lot of consulting and cross-checking with other researchers about the clues they were gathering to ensure they had the right name before they gave it to the FBI. By July she and the researcher were convinced they had their guy: Connor Riley Moucka, a 25-year-old high school dropout living with his grandfather in Ontario. On October 30, Royal Canadian Mounted Police converged on Moucka’s home and arrested him. According to an affidavit filed in Canadian court, a plainclothes Canadian police officer visited Moucka’s house under some pretense on the afternoon of October 21, nine days before the arrest, to secretly capture a photo of him and compare it with an image US authorities had provided. The officer knocked and rang the bell; Moucka opened the door looking disheveled and told the visitor: “You woke me up, sir.” He told the officer his name was Alex; Moucka sometimes used the alias Alexander Antonin Moucka. Satisfied that the person who answered the door was the person the US was seeking, the officer left. Waifu’s online rants against Nixon escalated at this point, as did his attempts at misdirection. She believes the visit to his door spooked him. Nixon won’t say exactly how they unmasked Moucka—only that he made a mistake. “I don’t want to train these people in how to not get caught [by revealing his error],” she says. The Canadian affidavit against Moucka reveals a number of other violent posts he’s alleged to have made online beyond the threats he made against her. Some involve musings about becoming a serial killer or mass-mailing sodium nitrate pills to Black people in Michigan and Ohio; in another, his online persona talks about obtaining firearms to “kill Canadians” and commit “suicide by cop.”  Prosecutors, who list Moucka’s online aliases as including Waifu, Judische, and two more in the indictment, say he and others extorted at least $2.5 million from at least three victims whose data they stole from Snowflake accounts. Moucka has been charged with nearly two dozen counts, including conspiracy, unauthorized access to computers, extortion, and wire fraud. He has pleaded not guilty and was extradited to the US last July. His trial is scheduled for October this year, though hacking cases usually end in plea agreements rather than going to trial.  It took months for authorities to arrest Moucka after Nixon and her colleague shared their findings with the authorities, but an alleged associate of his in the Snowflake conspiracy, a US Army soldier named Cameron John Wagenius (Kiberphant0m online), was arrested more quickly.  On November 10, 2024, Nixon and her team found a mistake Wagenius made that helped identify him, and on December 20 he was arrested. Wagenius has already pleaded guilty to two charges around the sale or attempted sale of confidential phone records and will be sentenced this March. These days Nixon continues to investigate sextortion among Com members. But she says that remaining members of Waifu’s group still taunt and threaten her. “They are continuing to persist in their nonsense, and they are getting taken out one by one,” she says. “And I’m just going to keep doing that until there’s no one left on that side.”  Kim Zetter is a journalist who covers cybersecurity and national security. She is the author of Countdown to Zero Day.

The threats started in spring. 

In April 2024, a mysterious someone using the online handles “Waifu” and “Judische” began posting death threats on Telegram and Discord channels aimed at a cybersecurity researcher named Allison Nixon. 

“Alison [sic] Nixon is gonna get necklaced with a tire filled with gasoline soon,” wrote Waifu/Judische, both of which are words with offensive connotations. “Decerebration is my fav type of brain death, thats whats gonna happen to alison Nixon.” 

It wasn’t long before others piled on. Someone shared AI-generated nudes of Nixon.

These anonymous personas targeted Nixon because she had become a formidable threat: As chief research officer at the cyber investigations firm Unit 221B, named after Sherlock Holmes’s apartment, she had built a career tracking cybercriminals and helping get them arrested. For years she had lurked quietly in online chat channels or used pseudonyms to engage with perpetrators directly while piecing together clues they’d carelessly drop about themselves and their crimes. This had helped her bring to justice a number of cybercriminals—especially members of a loosely affiliated subculture of anarchic hackers who call themselves the Com.

But members of the Com aren’t just involved in hacking; some of them also engage in offline violence against researchers who track them. This includes bricking (throwing a brick through a victim’s window) and swatting (a dangerous type of hoax that involves reporting a false murder or hostage situation at someone’s home so SWAT teams will swarm it with guns drawn). Members of a Com offshoot known as 764 have been accused of even more violent acts—including animal torture, stabbings, and school shootings—or of inciting others in and outside the Com to commit these crimes.

Nixon started tracking members of the community more than a decade ago, when other researchers and people in law enforcement were largely ignoring them because they were young—many in their teens. Her early attention allowed her to develop strategies for unmasking them.

Ryan Brogan, a special agent with the FBI, says Nixon has helped him and colleagues identify and arrest more than two dozen members of the community since 2011, when he first began working with her, and that her skills in exposing them are unparalleled. “If you get on Allison’s and my radar, you’re going [down]. It’s just a matter of time,” he says. “No matter how much digital anonymity and tradecraft you try to apply, you’re done.”

Though she’d done this work for more than a decade, Nixon couldn’t understand why the person behind the Waifu/Judische accounts was suddenly threatening her. She had given media interviews about the Com—most recently on 60 Minutes—but not about her work unmasking members to get them arrested, so the hostility seemed to come out of the blue. And although she had taken an interest in the Waifu persona in years past for crimes he boasted about committing, he hadn’t been on her radar for a while when the threats began, because she was tracking other targets. 

Now Nixon resolved to unmask Waifu/Judische and others responsible for the death threats—and take them down for crimes they admitted to committing. “Prior to them death-threatening me, I had no reason to pay attention to them,” she says. 

Com beginnings

Most people have never heard of the Com, but its influence and threat are growing.

It’s an online community comprising loosely affiliated groups of, primarily, teens and twentysomethings in North America and English-speaking parts of Europe who have become part of what some call a cybercrime youth movement. 

International laws and norms, and fears of retaliation, prevent states from going all out in cyber operations. That doesn’t stop the anarchic Com.

Over the last decade, its criminal activities have escalated from simple distributed denial-of-service (DDoS) attacks that disrupt websites to SIM-swapping hacks that hijack a victim’s phone service, as well as crypto theft, ransomware attacks, and corporate data theft. These crimes have affected AT&T, Microsoft, Uber, and others. Com members have also been involved in various forms of sextortion aimed at forcing victims to physically harm themselves or record themselves doing sexually explicit activities. The Com’s impact has also spread beyond the digital realm to kidnapping, beatings, and other violence. 

One longtime cybercrime researcher, who asked to remain anonymous because of his work, says the Com is as big a threat in the cyber realm as Russia and China—for one unusual reason.

“There’s only so far that China is willing to go; there’s only so far that Russia or North Korea is willing to go,” he says, referring to international laws and norms, and fears of retaliation, that prevent states from going all out in cyber operations. That doesn’t stop the anarchic Com, he says.

FRANZISKA BARCZYK

“It is a pretty significant threat, and people tend to … push it under the rug [because] it’s just a bunch of kids,” he says. “But look at the impact [they have].”

Brogan says the amount of damage they do in terms of monetary losses “can become staggering very quickly.”

There is no single site where Com members congregate; they spread across a number of web forums and Telegram and Discord channels. The group follows a long line of hacking and subculture communities that emerged online over the last two decades, gained notoriety, and then faded or vanished after prominent members were arrested or other factors caused their decline. They differed in motivation and activity, but all emerged from “the same primordial soup,” says Nixon. The Com’s roots can be traced to the Scene, which began as a community of various “warez” groups engaged in pirating computer games, music, and movies.

When Nixon began looking at the Scene, in 2011, its members were hijacking gaming accounts, launching DDoS attacks, and running booter services. (DDoS attacks overwhelm a server or computer with traffic from bot-controlled machines, preventing legitimate traffic from getting through; booters are tools that anyone can rent to launch a DDoS attack against a target of choice.) While they made some money, their primary goal was notoriety.

This changed around 2018. Cryptocurrency values were rising, and the Com—or the Community, as it sometimes called itself—emerged as a subgroup that ultimately took over the Scene. Members began to focus on financial gain—cryptocurrency theft, data theft, and extortion.

The pandemic two years later saw a surge in Com membership that Nixon attributes to social isolation and the forced movement of kids online for schooling. But she believes economic conditions and socialization problems have also driven its growth. Many Com members can’t get jobs because they lack skills or have behavioral issues, she says. A number who have been arrested have had troubled home lives and difficulty adapting to school, and some have shown signs of mental illness. The Com provides camaraderie, support, and an outlet for personal frustrations. Since 2018, it has also offered some a solution to their money problems.

Loose-knit cells have sprouted from the community—Star Fraud, ShinyHunters, Scattered Spider, Lapsus$—to collaborate on clusters of crime. They usually target high-profile crypto bros and tech giants and have made millions of dollars from theft and extortion, according to court records. 

But dominance, power, and bragging rights are still motivators, even in profit operations, says the cybercrime researcher, which is partly why members target “big whales.”

“There is financial gain,” he says, “but it’s also [sending a message that] I can reach out and touch the people that think they’re untouchable.” In fact, Nixon says, some members of the Com have overwhelming ego-driven motivations that end up conflicting with their financial motives.

“Often their financial schemes fall apart because of their ego, and that phenomenon is also what I’ve made my career on,” she says.

The hacker hunter emerges

Nixon has straight dark hair, wears wire-rimmed glasses, and has a slight build and bookish demeanor that, on first impression, could allow her to pass for a teen herself. She talks about her work in rapid cadences, like someone whose brain is filled with facts that are under pressure to get out, and she exudes a sense of urgency as she tries to make people understand the threat the Com poses. She doesn’t suppress her happiness when someone she’s been tracking gets arrested.

In 2011, when she first began investigating the communities from which the Com emerged, she was working the night shift in the security operations center of the security firm SecureWorks. The center responded to tickets and security alerts emanating from customer networks, but Nixon coveted a position on the company’s counter-threats team, which investigated and published threat-intelligence reports on mostly state-sponsored hacking groups from China and Russia. Without connections or experience, she had no path to investigative work. But Nixon is an intensely curious person, and this created its own path.

Allison Nixon
Allison Nixon is chief research officer at the cybersecurity investigations firm Unit 221B, where she tracks cybercriminals and helps bring them to justice.
YLVA EREVALL

Where the threat team focused on the impact hackers had on customer networks—how they broke in, what they stole—Nixon was more interested in their motivations and the personality traits that drove their actions. She assumed there must be online forums where criminal hackers congregated, so she googled “hacking forums” and landed on a site called Hack Forums.

“It was really stupid simple,” she says.

She was surprised to see members openly discussing their crimes there. She reached out to someone on the SecureWorks threat team to see if he was aware of the site, and he dismissed it as a place for “script kiddies”—a pejorative term for unskilled hackers.

This was a time when many cybersecurity pros were shifting their focus away from cybercrime to state-sponsored hacking operations, which were more sophisticated and getting a lot of attention. But Nixon likes to zig where others zag, and her colleague’s dismissiveness fueled her interest in the forums. Two other SecureWorks colleagues shared that interest, and the three studied the forums during downtime on their shifts. They focused on trying to identify the people running DDoS booters. 

What Nixon loved about the forums was how accessible they were to a beginner like herself. Threat-intelligence teams require privileged access to a victim’s network to investigate breaches. But Nixon could access everything she needed in the public forums, where the hackers seemed to think no one was watching. Because of this, they often made mistakes in operational security, or OPSEC—letting slip little biographical facts such as the city where they lived, a school they attended, or a place they used to work. These details revealed in their chats, combined with other information, could help expose the real identities behind their anonymous masks. 

“It was a shock to me that it was relatively easy to figure out who [they were],” she says. 

She wasn’t bothered by the immature boasting and petty fights that dominated the forums. “A lot of people don’t like to do this work of reading chat logs. I realize that this is a very uncommon thing. And maybe my brain is built a little weird that I’m willing to do this,” she says. “I have a special talent that I can wade through garbage and it doesn’t bother me.” 

Nixon soon realized that not all the members were script kiddies. Some exhibited real ingenuity and “powerful” skills, she says, but because they were applying these to frivolous purposes—hijacking gamer accounts instead of draining bank accounts—researchers and law enforcement were ignoring them. Nixon began tracking them, suspecting that they would eventually direct their skills at more significant targets—an intuition that proved to be correct. And when they did, she had already amassed a wealth of information about them. 

She continued her DDoS research for two years until a turning point in 2013, when the cybersecurity journalist Brian Krebs, who made a career tracking cybercriminals, got swatted. 

About a dozen people from the security community worked with Krebs to expose the perpetrator, and Nixon was invited to help. Krebs sent her pieces of the puzzle to investigate, and eventually the group identified the culprit (though it would take two years for him to be arrested). When she was invited to dinner with Krebs and the other investigators, she realized she’d found her people.

“It was an amazing moment for me,” she says. “I was like, wow, there’s all these like-minded people that just want to help and are doing it just for the love of the game, basically.”

Staying one step ahead

It was porn stars who provided Nixon with her next big research focus—one that underscored her skill at spotting Com actors and criminal trends in their nascent stages, before they emerged as major threats.

In 2018, someone was hijacking the social media accounts of certain adult-film stars and using those accounts to blast out crypto scams to their large follower bases. Nixon couldn’t figure out how the hackers had hijacked the social media profiles, but she promised to help the actors regain access to their accounts if they agreed to show her the private messages the hackers had sent or received during the time they controlled them. These messages led her to a forum where members were talking about how they stole the accounts. The hackers had tricked some of these actors into disclosing the mobile phone numbers of others. Then they used a technique called SIM swapping to reset passwords for social media accounts belonging to those other stars, locking them out. 

In SIM swapping, fraudsters get a victim’s phone number assigned to a SIM card and phone they control, so that calls and messages intended for the victim go to them instead. This includes one-time security codes that sites text to account holders to verify themselves when accessing their account or changing its password. In some of the cases involving the porn stars, the hackers had manipulated telecom workers into making the SIM swaps for what they thought were legitimate reasons, and in other cases they bribed the workers to make the change. The hackers were then able to alter the password on the actors’ social media accounts, lock out the owners, and use the accounts to advertise their crypto scams. 

SIM swapping is a powerful technique that can be used to hijack and drain entire cryptocurrency and bank accounts, so Nixon was surprised to see the fraudsters using it for relatively unprofitable schemes. But SIM swapping had rarely been used for financial fraud at that point, and like the earlier hackers Nixon had seen on Hack Forums, the ones hijacking porn star accounts didn’t seem to grasp the power of the technique they were using. Nixon suspected that this would change and SIM swapping would soon become a major problem, so she shifted her research focus accordingly. It didn’t take long for the fraudsters to pivot as well.

Nixon’s skill at looking ahead in this way has served her throughout her career. On multiple occasions a hacker or hacking group would catch her attention—for using a novel hacking approach in some minor operation, for example—and she’d begin tracking their online posts and chats in the belief that they’d eventually do something significant with that skill. 

They usually did. When they later grabbed headlines with a showy or impactful operation, these hackers would seem to others to have emerged from nowhere, sending researchers and law enforcement scrambling to understand who they were. But Nixon would already have a dossier compiled on them and, in some cases, had unmasked their real identity as well. Lizard Squad was an example of this. The group burst into the headlines in 2014 and 2015 with a series of high-profile DDoS campaigns, but Nixon and colleagues at the job where she worked at the time had already been watching its members as individuals for a while. So the FBI sought their assistance in identifying them.

“The thing about these young hackers is that they … keep going until they get arrested, but it takes years for them to get arrested,” she says. “So a huge aspect of my career is just sitting on this information that has not been actioned [yet].”

It was during the Lizard Squad years that Nixon began developing tools to scrape and record hacker communications online, though it would be years before she began using these concepts to scrape the Com chatrooms and forums. These channels held a wealth of data that might not seem useful during the nascent stage of a hacker’s career but could prove critical later, when law enforcement got around to investigating them; yet the contents were always at risk of being deleted by Com members or getting taken down by law enforcement when it seized websites and chat channels.

Nixon’s work is unique because she engages with the actors in chat spaces to draw out information from them that “would not be otherwise normally available.”

Over several years, she scraped and preserved whatever chatrooms she was investigating. But it wasn’t until early 2020, when she joined Unit 221B, that she got the chance to scrape the Telegram and Discord channels of the Com. She pulled all of this data together into a searchable platform that other researchers and law enforcement could use. The company hired two former hackers to help build scraping tools and infrastructure for this work; the result is eWitness, a community-driven, invitation-­only platform. It was initially seeded only with data Nixon had collected after she arrived at Unit 221B, but has since been augmented with data that other users of the platform have scraped from Com social spaces as well, some of which doesn’t exist in public forums anymore.

Brogan, of the FBI, says it’s an incredibly valuable tool, made more so by Nixon’s own contributions. Other security firms scrape online criminal spaces as well, but they seldom share the content with outsiders, and Brogan says Nixon’s work is unique because she engages with the actors in chat spaces to draw out information from them that “would not be otherwise normally available.” 

The preservation project she started when she got to Unit 221B could not have been better timed, because it coincided with the pandemic, the surge in new Com membership, and the emergence of two disturbing Com offshoots, CVLT and 764. She was able to capture their chats as these groups first emerged; after law enforcement arrested leaders of the groups and took control of the servers where their chats were posted, this material went offline.

CVLT—pronounced “cult”—was reportedly founded around 2019 with a focus on sextortion and child sexual abuse material. 764 emerged from CVLT and was spearheaded by a 15-year-old in Texas named Bradley Cadenhead, who named it after the first digits of his zip code. Its focus was extremism and violence. 

In 2021, because of what she observed in these groups, Nixon turned her attention to sextortion among Com members.

The type of sextortion they engaged in has its roots in activity that began a decade ago as “fan signing.” Hackers would use the threat of doxxing to coerce someone, usually a young female, into writing the hacker’s handle on a piece of paper. The hacker would use a photo of it as an avatar on his online accounts—a kind of trophy. Eventually some began blackmailing victims into writing the hacker’s handle on their face, breasts, or genitals. With CVLT, this escalated even further; targets were blackmailed into carving a Com member’s name into their skin or engaging in sexually explicit acts while recording or livestreaming themselves.

During the pandemic a surprising number of SIM swappers crossed into child sexual abuse material and sadistic sextortion, according to Nixon. She hates tracking this gruesome activity, but she saw an opportunity to exploit it for good. She had long been frustrated at how leniently judges treated financial fraudsters because of their crimes’ seemingly nonviolent nature. But she saw a chance to get harsher sentences for them if she could tie them to their sextortion and began to focus on these crimes. 

At this point, Waifu still wasn’t on her radar. But that was about to change.

Endgame

Nixon landed in Waifu’s crosshairs after he and fellow members of the Com were involved in a large hack involving AT&T customer call records in April 2024.

Waifu’s group gained access to dozens of cloud accounts with Snowflake, a company that provides online data storage for customers. One of those customers had more than 50 billion call logs of AT&T wireless subscribers stored in its Snowflake account. 

They tried to re-extort the telecom, threatening on social media to leak the records. They tagged the FBI in the post. “It’s like they were begging to be investigated,” says Nixon.

Among the subscriber records were call logs for FBI agents who were AT&T customers. Nixon and other researchers believe the hackers may have been able to identify the phone numbers of agents through other means. Then they may have used a reverse-lookup program to identify the owners of phone numbers that the agents called or that called them and found Nixon’s number among them. This is when they began harassing her.

But then they got reckless. They allegedly extorted nearly $400,000 from AT&T in exchange for promising to delete the call records they’d stolen. Then they tried to re-extort the telecom, threatening on social media to leak the records they claimed to have deleted if it didn’t pay more. They tagged the FBI in the post.

“It’s like they were begging to be investigated,” says Nixon.

The Snowflake breaches and AT&T records theft were grabbing headlines at the time, but Nixon had no idea her number was in the stolen logs or that Waifu/Judische was a prime suspect in the breaches. So she was perplexed when he started taunting and threatening her online.

FRANZISKA BARCZYK

Over several weeks in May and June, a pattern developed. Waifu or one of his associates would post a threat against her and then post a message online inviting her to talk. She assumes now that they believed she was helping law enforcement investigate the Snowflake breaches and hoped to draw her into a dialogue to extract information from her about what authorities knew. But Nixon wasn’t helping the FBI investigate them yet. It was only after she began looking at Waifu for the threats that she became aware of his suspected role in the Snowflake hack.

It wasn’t the first time she had studied him, though. Waifu had come to her attention in 2019 when he bragged about framing another Com member for a hoax bomb threat and later talked about his involvement in SIM-swapping operations. He made an impression on her. He clearly had technical skills, but Nixon says he also often appeared immature, impulsive, and emotionally unstable, and he was desperate for attention in his interactions with other members. He bragged about not needing sleep and using Adderall to hack through the night. He was also a bit reckless about protecting personal details. He wrote in private chats to another researcher that he would never get caught because he was good at OPSEC, but he also told the researcher that he lived in Canada—which turned out to be true.

Nixon’s process for unmasking Waifu followed a general recipe she used to unmask Com members: She’d draw a large investigative circle around a target and all the personas that communicated with that person online, and then study their interactions to narrow the circle to the people with the most significant connections to the target. Some of the best leads came from a target’s enemies; she could glean a lot of information about their identity, personality, and activities from what the people they fought with online said about them.

“The enemies and the ex-girlfriends, generally speaking, are the best [for gathering intelligence on a suspect],” she says. “I love them.”

While she was doing this, Waifu and his group were reaching out to other security researchers, trying to glean information about Nixon and what she might be investigating. They also attempted to plant false clues with the researchers by dropping the names of other cybercriminals in Canada who could plausibly be Waifu. Nixon had never seen cybercriminals engage in counterintelligence tactics like this.

Amid this subterfuge and confusion, Nixon and another researcher working with her did a lot of consulting and cross-checking with other researchers about the clues they were gathering to ensure they had the right name before they gave it to the FBI.

By July she and the researcher were convinced they had their guy: Connor Riley Moucka, a 25-year-old high school dropout living with his grandfather in Ontario. On October 30, Royal Canadian Mounted Police converged on Moucka’s home and arrested him.

According to an affidavit filed in Canadian court, a plainclothes Canadian police officer visited Moucka’s house under some pretense on the afternoon of October 21, nine days before the arrest, to secretly capture a photo of him and compare it with an image US authorities had provided. The officer knocked and rang the bell; Moucka opened the door looking disheveled and told the visitor: “You woke me up, sir.” He told the officer his name was Alex; Moucka sometimes used the alias Alexander Antonin Moucka. Satisfied that the person who answered the door was the person the US was seeking, the officer left. Waifu’s online rants against Nixon escalated at this point, as did his attempts at misdirection. She believes the visit to his door spooked him.

Nixon won’t say exactly how they unmasked Moucka—only that he made a mistake.

“I don’t want to train these people in how to not get caught [by revealing his error],” she says.

The Canadian affidavit against Moucka reveals a number of other violent posts he’s alleged to have made online beyond the threats he made against her. Some involve musings about becoming a serial killer or mass-mailing sodium nitrate pills to Black people in Michigan and Ohio; in another, his online persona talks about obtaining firearms to “kill Canadians” and commit “suicide by cop.” 

Prosecutors, who list Moucka’s online aliases as including Waifu, Judische, and two more in the indictment, say he and others extorted at least $2.5 million from at least three victims whose data they stole from Snowflake accounts. Moucka has been charged with nearly two dozen counts, including conspiracy, unauthorized access to computers, extortion, and wire fraud. He has pleaded not guilty and was extradited to the US last July. His trial is scheduled for October this year, though hacking cases usually end in plea agreements rather than going to trial. 

It took months for authorities to arrest Moucka after Nixon and her colleague shared their findings with the authorities, but an alleged associate of his in the Snowflake conspiracy, a US Army soldier named Cameron John Wagenius (Kiberphant0m online), was arrested more quickly. 

On November 10, 2024, Nixon and her team found a mistake Wagenius made that helped identify him, and on December 20 he was arrested. Wagenius has already pleaded guilty to two charges around the sale or attempted sale of confidential phone records and will be sentenced this March.

These days Nixon continues to investigate sextortion among Com members. But she says that remaining members of Waifu’s group still taunt and threaten her.

“They are continuing to persist in their nonsense, and they are getting taken out one by one,” she says. “And I’m just going to keep doing that until there’s no one left on that side.” 

Kim Zetter is a journalist who covers cybersecurity and national security. She is the author of Countdown to Zero Day.

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Middle East war fosters concerns about physical data center security

The most common issue that Guidepost talks about with its clients is insider threats, which can be anyone that is rightfully permitted into your data center. Data centers have very strict rules regarding movement of visitors, but employees pretty much have free rule of the place. “Insider threat could be someone simply putting a USB stick in a server or having access to a data device that they’re not supposed to,” he said. “A threat actor could potentially cause harm within the facility, whether that’s mechanical, electrical, plumbing spaces or the data halls themselves is our number one preventative item that we’re trying to thwart.” When it comes to external threats, Guidepost looks after vehicle-borne IEDs and vehicle ramming, even if it’s accidental. That’s why data centers have high, anti-climb perimeter fences, multi-layered gates. and vehicle barriers that are put in place help to prevent any unwanted vehicles outside of the facility. “It’s a lot of what we call Crime Prevention Through Environmental Design,” said Bekisz. “It’s a theory that we utilize in our industry for ensuring that we are detecting and thwarting individuals before they are willing to commit some type of offensive action or some type of unwanted behavior.” That includes simple things like lighting right or reducing the visibility of the data center through shrubs and trees and berms and using that in consortium with physical preventative devices. Drones are a growing problem, even if they are not being used in kamikaze attacks. Bekisz said the only thing you can do is put in drone detection, so you have some type of device in the air in the area of your facility, and then you call for support from local emergency services.

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Palantir partners with Nvidia to streamline AI data center deployment

This collaboration grants enterprises full control over their data, AI models, and applications while supporting the use of open-source AI models and related data acceleration tools. The Palantir AI OS reference architecture gives enterprises total control over their data, AI models and applications. It is particularly critical for customers with existing GPU infrastructure, latency-sensitive workflows, data sovereignty requirements, and high geographic distribution. “From our first deployment with the United States government and in every deployment since, our software has had to meet the moment in the most complex and sensitive environments where customers must maintain control,” says Akshay Krishnaswamy, Palantir’s chief architect in a statement. “Together with Nvidia — and building on many customers’ existing investments — we are proud to deliver a fully integrated AI operating system that is optimized for Nvidia accelerated compute infrastructure and enables customers to realize the promise of on-premises, edge, and sovereign cloud deployments,” he added. Sovereign AI is an emerging market that represents a country’s efforts to develop and maintain control of its own AI, using its own data, and keeping the data within its borders.

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Who’s in the data-center space race?

But not everyone is that optimistic. According to Gartner, space-based data centers won’t be useful for decades, so companies should focus on expanding capacity down here on Earth. “I honestly think the idea with the current landscape of putting data centers in space is ridiculous,” OpenAI CEO Sam Altman told The Indian Express in February. Current satellite computing can’t easily scale to data centers, agrees Holger Mueller, an analyst at Constellation Research. “Weight is still the restriction,” he says. “It’s the equivalent of you buying a tablet or small laptop to travel across Latin America versus putting in a data center in the Amazon. Different power requirements, investment, totally different setup.” Then there are issues like damaged solar panels from meteorite storms and satellite debris, he adds. “You would have to pay for operational redundancy, which is further investment.” “Data centers will be built where they are affordable,” he says. “I don’t see space happening soon. Remember the Microsoft submerged one? Crickets…” But he agrees that solar power is nice, though the sun is only visible from one side of the planet at any given time. And space is cold, he says. Cooling down in outer space In fact, space is very cold. Close to absolute zero cold. But vacuum is also a great insulator, and there’s no air to move the heat around. “You can’t convect heat away,” says Richard Bonner, CTO at Accelsius, a liquid cooling company. Bonner has worked on NASA research projects about the challenge of cooling in space and is very familiar with the problem. A small proportion of the heat might be turned back into useful electricity, but that’s not really a solution, he says, because computer chips don’t get quite that hot. Instead, heat is radiated. When an object warms up, it generates

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Community Opposition Emerges as New Gatekeeper for AI Data Center Expansion

The rapid global buildout of AI infrastructure is colliding with a new constraint that hyperscalers cannot solve with capital or GPUs: local opposition. In the first months of 2026, community resistance has already begun reshaping the development pipeline. A February analysis by Sightline Climate estimates that 30–50 percent of the data center capacity expected to come online in 2026 may not be delivered on schedule, reflecting a growing set of constraints that now include power availability, permitting challenges, and increasingly organized local opposition. The financial stakes are already substantial. Recent reporting indicates that tens of billions of dollars in planned data center development have been delayed or halted amid community pushback, including an estimated $98 billion worth of projects delayed or blocked in a single quarter of 2025, according to research cited by Data Center Watch. What had been framed throughout 2024 and 2025 as an inevitable expansion of hyperscale campuses, gigawatt-scale power agreements, and AI “factory” clusters is now encountering a different kind of gatekeeper: the communities expected to host the infrastructure. The shift is already visible in project outcomes. Across the United States, multiple projects were canceled, blocked, or fundamentally reshaped in the opening months of 2026 due to organized local opposition. Reporting from The Guardian found that 26 data center projects were canceled in December and January, compared with just one cancellation in October, suggesting that community resistance campaigns are increasingly capable of stopping projects before construction begins. At the same time, local governments are responding to community pressure with moratoriums, zoning restrictions, and permitting delays that can stall projects long enough to jeopardize financing or push developers to seek more favorable jurisdictions. While opposition to data center development is not new, the scale, coordination, and success rate of these efforts suggest a structural shift in how

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From Real Estate to AI Factories: 7×24 Exchange’s Michael Siteman on Power, Politics, and the New Logic of Data Center Development

The data center industry’s explosive growth in the AI era is transforming how projects are conceived, financed, and built. What was once a real estate-driven business has become something far more complex: an engineering and infrastructure challenge defined by power availability, network topology, and local politics. That was one of the key themes in this recent episode of the Data Center Frontier Show podcast, where Editor-in-Chief Matt Vincent spoke with Michael Siteman, President of Prodigious Proclivities and a longtime leader and board member within 7×24 Exchange International. Drawing on decades of experience spanning brokerage, development, connectivity strategy, and infrastructure advisory, Siteman offered a field-level view of how the industry is adapting to the demands of AI-driven infrastructure. “The business used to be a pure real estate play,” Siteman said. “Now it’s a systems engineering problem. It’s power, network topology, the real estate itself, and political risk—all of these factors that have to work together.” Site Selection Becomes Systems Engineering For much of the early data center era, location decisions revolved around traditional real estate considerations: available buildings, proximity to customers, and nearby fiber connectivity. That logic has fundamentally changed. “Years ago, the question was: Is there a building? Are there carriers nearby?” Siteman recalled. “Now it’s completely different. Power availability, network topology, community acceptance—these are the variables that define whether a site works.” Utilities themselves have become gatekeepers in the process. “You go to a utility and ask if there’s power,” he explained. “They might say, ‘We might have power, but you have to pay us to study whether we actually have power.’” In many regions experiencing rapid digital infrastructure expansion, the answer increasingly comes back the same: there simply isn’t enough grid capacity available. Power Becomes the Project In the gigawatt-scale era of AI infrastructure, power strategy has moved

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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