KADOKAWA is on high alert for potential cyberattacks from the Russian hacker group Black Suit after failed negotiations aimed at resolving a previous major cyber incident. Black Suit, known for its ransomware operations, has warned of further attacks following KADOKAWA's refusal to pay an $8 million ransom (around 1.1 billion yen).
In a recent update to Kyodo News, the hackers disclosed that discussions with the company had broken down.
“We demanded $8 million, but KADOKAWA did not comply,” Black Suit stated, cautioning that the company “will face the same problem repeatedly” as they still have access to KADOKAWA’s systems.
Cybersecurity specialist Katsuji Okamoto from Trend Micro commented on the matter, stressing the severity of the threat.
“Even if this is a bluff, KADOKAWA must reassess its systems and prepare for the worst. Black Suit is notorious for their persistence and thorough execution of attacks, typically carrying them out from start to finish independently.”
KADOKAWA, however, has chosen not to disclose specific details about the incident, citing an active police investigation.
“This is a matter under police investigation, and we cannot comment,” a company spokesperson said.
The company initially reported the cyberattack in early June, noting disruptions across multiple websites and services. Since then, KADOKAWA has provided regular updates on its progress in system restoration and investigation efforts.
On June 27, 2024, Black Suit reportedly revealed the full scale of the breach, claiming they had stolen 1.5 terabytes of sensitive data, including business plans, user information, contracts, and financial records.
The group alleged they exploited vulnerabilities within KADOKAWA’s network infrastructure, gaining access to a “control center” that enabled them to encrypt the entire network, impacting subsidiaries like Dwango and NicoNico.
They threatened to release the stolen data if the ransom was not paid by July 1, 2024.
As of August 5, KADOKAWA confirmed a data leak affecting 254,241 individuals, following an investigation by third-party experts.