Kadokawa Pays the Price: $2.98 Million Ransom Paid to BlackSuit Hackers
The Japanese publishing house Kadokawa reportedly paid approximately $2.98 million in cryptocurrency to a hacker group following a large-scale cyberattack in June. An investigation commissioned by Kyodo News and conducted by Unknown Technologies confirmed that the $2.98 million transaction occurred within the same month.
On June 8, Kadokawa’s servers, including those supporting the Niconico video streaming platform, fell victim to a ransomware attack. It was later revealed that all employees of Dwango Co., a subsidiary of Kadokawa, were affected by a data breach.
The hackers, identifying themselves as the BlackSuit group, claimed to have stolen and encrypted 1.5 terabytes of data, including personal and financial information. During negotiations, they demanded $8.25 million from Shigetaka Kurita, the Chief Operating Officer of Dwango. However, citing strict compliance measures implemented after prior scandals, Kurita stated that no more than $3 million could be allocated.
The attackers issued a 48-hour ultimatum, demanding $2.98 million and threatening to release all stolen data if the payment was not made. According to the investigation, approximately 44 bitcoins were transferred to the hackers’ cryptocurrency account within the stipulated timeframe.
An official company representative declined to comment on the payment, citing an ongoing investigation. Experts at Unknown Technologies warn that negotiating with hackers is fraught with risks, as many cybercriminals fail to honor their commitments after receiving ransom payments.
The Kadokawa case highlights how cyberattacks can transform compromises into multimillion-dollar losses, underscoring the profound vulnerabilities faced by businesses in an era of digital dependence and inadequate data protection.
