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Crime IT

Tech CEO Sentenced To 5 Years in IP Address Scheme (krebsonsecurity.com) 58

Amir Golestan, the 40-year-old CEO of the Charleston, S.C. based technology company Micfo, has been sentenced to five years in prison for wire fraud. From a report: Golestan's sentencing comes nearly two years after he pleaded guilty to using an elaborate network of phony companies to secure more than 735,000 Internet Protocol (IP) addresses from the American Registry for Internet Numbers (ARIN), the nonprofit which oversees IP addresses assigned to entities in the U.S., Canada, and parts of the Caribbean.

In 2018, ARIN sued Golestan and Micfo, alleging they had obtained hundreds of thousands of IP addresses under false pretenses. ARIN and Micfo settled that dispute in arbitration, with Micfo returning most of the addresses that it hadn't already sold. ARIN's civil case caught the attention of federal prosecutors in South Carolina, who in May 2019 filed criminal wire fraud charges against Golestan, alleging he'd orchestrated a network of shell companies and fake identities to prevent ARIN from knowing the addresses were all going to the same buyer.

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Tech CEO Sentenced To 5 Years in IP Address Scheme

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  • 5 Years for that? (Score:3, Insightful)

    by Vlad_the_Inhaler ( 32958 ) on Tuesday October 17, 2023 @04:11PM (#63932409)

    A lot of the sentencing in the US seems to be lacking a sense of proportion, although this is far from being an extreme example.
    Whatever, Land of the Free and all that, and one of the those with the highest proportion of the population behind bars.

    • by bjoast ( 1310293 ) on Tuesday October 17, 2023 @04:22PM (#63932431)
      I guess it depends on the IPv4 block. If he had stolen the 192.168.0.0/16 block, we would all be fucked!
    • 5 years for not being rich enough to get away with it. Or, rather, not knowing the right people.
      Justice in the State seems as random as drawing a value out of a huge hat. Whatever number's written on it, that's how many years of jail you get.

    • wait, it get's better, some people that screw others out of millions get 3 years, others get 20.... and murderers can get anything from getting no sentence to getting sentenced to death! we really are whacky the way we sentence people! I kid you not. It is crazy and we 'normal' citizens usually are freaked out over this stuff.
    • by rsilvergun ( 571051 ) on Tuesday October 17, 2023 @04:45PM (#63932503)
      For inconveniencing mega corporations. This would've caused a lot of headaches to large enterprises.
    • Re:5 Years for that? (Score:4, Interesting)

      by Shakrai ( 717556 ) on Tuesday October 17, 2023 @05:02PM (#63932543) Journal

      A lot of the sentencing in the US seems to be lacking a sense of proportion, although this is far from being an extreme example.

      Couple things,

      1) Under the Federal sentencing guidelines [ussc.gov], the recommended range for a fraud sentence comes down to the monetary value obtained for the fraud. IPv4s are going for around $40 per IP [ipv4marketgroup.com] the last time I checked, which puts the value of this fraud at 29.4 Million.
      2) Following the guidelines, assuming he has no criminal history, that dollar amount puts him at an offense level of 28 (pages 82 and 83 from the full PDF [ussc.gov])
      3) We can probably subtract 2 levels, since he plead guilty, under acceptance of responsibility (page 376), so now we're at 26
      4) Looking at the sentencing table, page 407, that gives a suggested sentence range of 63 to 78 months, or 5.25 to 6.50 years.

      tl;dr, he probably got a below guidelines range, which is pretty damned rare in the Federal system. It strongly implies he had exceptionally good lawyers (likely, he's rich), a sympathetic judge (unlikely for white collar fraud in Federal system), or he really assisted the Feds with the investigation and they joined defense counsel in asking for a downward departure (exceptionally rare but not unheard of).

      Another thing to remember, if he behaves in prison -- "prison" being relative here, he'll be at a minimum security camp that probably won't have a fence -- he'll get credit and can anticipate serving roughly 85% of his sentence. 4 years and change for eight digits worth of fraud.

      Now, should IP addresses be worth that much? Hell fucking no. See my IPv6 rant [slashdot.org] above. That's the only reason IPv4 addresses have this insane inflated value attached to them. This problem should have solved a full decade ago. Blame idiot ISPs like mine, idiot enterprise networks admins that are afraid of IPv6 and unwilling to bring it into their networks, and idiot well resourced organizations that should be doing better with IPv6 than they are, e.g., Microsoft, who only this year finally got around to offering geo-location support for IPv6 addresses [microsoft.com] within Azure. :(

      • idiot enterprise networks admins that are afraid of IPv6

        There's another bit to it.

        IPv4 is REALLY easy to do on AWS. IPv6? Not so much.

        Some hobbyist can just rent an EC2, plop an IPv4 address on it, and they're good.

        IPv6? No, you need to setup a subnet and like 12 other steps.

        Also, in my experience, it's not the network admins that are afraid of IPv6, it's the managers don't think it's important, and just let things sit.

  • by eneville ( 745111 ) on Tuesday October 17, 2023 @04:26PM (#63932439) Homepage

    A router goes to the doctor and says it hurts when I pee.

  • Another poster said we "need IPv6". No, we don't. It's just one of several "hacks" to make it seem like we take IPv4 public address exhaustion seriously.

    The original problem wasn't a lack of IPv4 addresses, it was a lack of routing table size. CIDR and BGP[4] made that 1993 problem go away.

    Then it was that the powers that be were too much beholden to politically connected organizations so that the initial "stupid large" allocations they doled out they refused to claw back. Good on MIT for returning it'

    • by Shakrai ( 717556 ) on Tuesday October 17, 2023 @05:12PM (#63932557) Journal

      You're totally wrong dude. There are more than four billion people on this planet. Boom, you've already exhausted the IPv4 pool. That's before you account for the fact that people own multiple devices, on multiple networks, e.g., smart phones, and those same people tend to work for employers that also have their own networks.

      You can't solve the use case with NAT, there literally are not enough addresses in a 2^32, and it's worth remembering that NAT by design breaks end-to-end connectivity. You can work around this to an extent, UDP hole punching [wikipedia.org] and other kludgy hacks, but those don't always work (lots of NAT implementations break them) and should not be required in any case. If you've ever used FaceTime, to pick a main streamapp you've probably heard of, it prefers to establish a direct peer-to-peer connection and will do so where possible with UDP hole punching. If neither end will allow a UDP hole punch to succeed, it falls back onto a connection routed via Apple's servers, and because Apple doesn't have an infinite bandwidth and server budget, you get a considerably lower bitrate/video quality and non-zero amount of additional latency.

      FaceTime is far from the only application that works like this, it's just one of the most mainstream ones, so don't take that explanation as an invitation to shit on Apple. Every outfit offering a video/audio communication solution is confronted with the same dilemma, peer to peer communication is best, but if you want consumers to use your app you need to provide the fallback path and you need to do it without bankrupting yourself in the process. IPv6 would greatly simplify this process even if you assume a large number of endpoints will be behind firewalls that filter inbound connections. (Also something that's arguably less important these days, since we all roam and can't control the firewall everywhere we go, your firewall and other security measures need to be done at the endpoint unless we're talking about a desktop or server that never moves, and even there, you still want an endpoint firewall)

      • What hinders IPv6 adoption most is the shunning of NAT and the insistence on end-to-end connectivity like firewalls aren't a thing. NAT is the solution to multi-homing, dynamic address allocations and privacy-problems. It's also a reminder that simple end-to-end connectivity hasn't existed for a long time, and even if you're using IPv6, you still need to design protocols for outbound-only connections and without inband-signalled addresses. Terminally stupid protocols like SIP should not exist. Unlike with I
        • by Shakrai ( 717556 )

          NAT is the solution to multi-homing, dynamic address allocations and privacy-problems

          It's none of those things. The solution to multi-homing is to get an ASN and implement BGP. The solution to dynamic address allocations and privacy is SLAAC and privacy extensions.

          It's also a reminder that simple end-to-end connectivity hasn't existed for a long time, and even if you're using IPv6, you still need to design protocols for outbound-only connections and without inband-signalled addresses.

          If you're doing security at the network edge you're fucking doing it wrong in the hybrid world we live in now. Do you have control over the firewall at every single hybrid/remote worker's house? Every single hotel/airport/etc. they visit? Of course you don't. You need to attack security at the endpoint, which isn't to say y

          • You zealots need to wake the fuck up or eventually people will figure out that IPv4 and HTTP all the way down can serve the whole world without a trace of IPv6.

            The solution to multi-homing is to get an ASN and implement BGP. The solution to dynamic address allocations and privacy is SLAAC and privacy extensions.

            Sure, now every little shop with a need for redundant internet access gets their own ASN and portable address space. Instead of exploding routing tables with 3 bytes per prefix, we get exploding routing tables with 6 bytes per prefix. And show me a network that doesn't fall over somewhere in the stack when it gets renumbered, so what does everybody w

            • by Shakrai ( 717556 )

              I won't even bother to address all the reasons why you're wrong about privacy extensions, routing tables, etc.

              All I'll say is it's rich that you're telling me the IPv6 people are the problem and it's doomed to failure unless we change. It has been in production for years. It's online with every national ISP, most regional ones, all the cellular carriers, nearly every cloud service provider, every content distribution network, blah, blah, blah, and it's the default on all of these systems/networks. T

              • You are delusional. There's nothing you can't do with IPv4. That's the internet. If you turn IPv4 off and use only IPv6, you are going to run into so many walls, you'll question whether you're connected to anything at all. Everybody who "uses" IPv6 relies on IPv4, hard. Turn IPv6 off on the other hand and you'll hardly notice a difference. The utter hubris that you think I can't know what I'm talking about if I'm not a fan of the pervasive half-assedness that is IPv6! After decades of work the people who ch
                • by Shakrai ( 717556 )

                  You are an uninformed idiot. Pointing out there are other uninformed idiots and turning off v4 will preclude you from talking to them does not prove that v6 is useless. It's also a red herring, because I never said you could turn off v4, only that you should be using v6 where possible.

                  If you want to imagine someone who primarily watches SVOD, surfs Facebook, and reads G-mail, you absolutely could kill v4 without them noticing. Every mainstream consumer oriented service is IPv6 aware. Virtually every CS

                  • you absolutely could kill v4 without them noticing.

                    Obviously you have never tried. You are the uninformed idiot.

                    • by Shakrai ( 717556 )

                      No, because there's no reason to do it. But you totally could if confronted with the person who thinks the "Internet" is Facebook and a "computer" is their cell phone.

                      You're just arguing red herrings though, because I never said that you SHOULD disable it, or even that doing so was desirable. You can't argue the merits of IPv6 so you need to put shit on my mouth to back up your silly head in the sand position because IPv6 is SCARY and NAT gives you the illusion of safety on v4.

                      Like I said, I look forwar

                    • You're telling me I can't avoid IPv6, it's coming whether I like it or not. But it's not: You can do everything with IPv4, and IPv6-only doesn't work, not even for mere consumers. That you think someone could get by with just IPv6 shows that you're talking out of your ass, like the usual IPv6 fanboi. An increasing amount of traffic uses IPv6 because IPv6 is used preferentially, but it could just as well use IPv4. If IPv6 disappears, hardly anyone will notice. If you turn off IPv4 anytime soon, everybody wil
    • Re: (Score:3, Insightful)

      by Anonymous Coward

      Another poster said we "need IPv6". No, we don't. It's just one of several "hacks" to make it seem like we take IPv4 public address exhaustion seriously.

      NAT is a hack to get 16 more bits out of IPv4's address space for non-serving consumer addresses. Server Name Indication and HTTP Host headers are another hack to route multiple webservices behind a single address using the standard ports 80 and 443.
      IPv6 is not just a hack, it's an actual different network protocol which is showing increasing adoption.

      The original problem wasn't a lack of IPv4 addresses, it was a lack of routing table size. CIDR and BGP[4] made that 1993 problem go away.

      Originally there wasn't a lack of IPv4 addresses, now there is, and staying on IPv4 defeats any notion that the Internet is a peer network.

      Sure, IPv6 will help. So will [...]

      Returning / reclass

      • I'm beginning to think that IPv6 was just created as a threat to get people to return the /8s they didn't need.
        • It wasn't. How on earth did you reach that conclusion?

          There isn't enough address space in v4 to handle the number of devices that want to be on the Internet, and the cost of the workarounds needed in response to that is extreme and ever-increasing. That's why it was created.

          Only about 43 class As were ever allocated. When IANA ran out of v4 space in 2011, we were going through a /8 every three weeks, so even every allocated /8 would only be about 2.5 years of allocations. A /8 just isn't that much space; ev

    • The original problem wasn't a lack of IPv4 addresses, it was a lack of routing table size. CIDR and BGP[4] made that 1993 problem go away.

      There's literally a problem on the internet with the current routing table size causing latency, the protocol was not designed to be subdivided the way it is (it's why it's a set of numbers rather than one big one). The problem has not "gone away". We're just endlessly moving problems around rather than addressing the damn underlying cause.

      There's never enough time or money to do it right, but there's always enough to fix it again.

  • by Opportunist ( 166417 ) on Tuesday October 17, 2023 @04:33PM (#63932467)

    Compared to some of the crap that has been going down lately where some crooks got off with billions with barely a slap on the wrist if (big if) they got caught, this is the equivalent of putting someone in front of a firing squad for stealing an apple.

    Who did that guy piss off, or forget to bribe, that he gets made an example?

    • he was an easy target for a quick conviction. Cops aren't there to keep you safe, they're there to arrest people and put them in jail. Those are the numbers people pay attention to. And crime is way, way down. But we keep throwing more money at them. They gotta do something to look productive.

      It's almost as if having a large, militarized police backed by prosecutors with unlimited resources who often use their careers as a springboard into politics is a bad thing....
      • by Shakrai ( 717556 )

        prosecutors with unlimited resources

        If you think prosecutors -- even Federal ones -- have unlimited resources it's safe to assume you've never been a victim of a crime.

        At the risk of bringing up politics and current events, one of the legitimate gripes Hunter Biden has, vis-à-vis his gun charge [apnews.com], while it technically is a Federal Felony, it is virtually never prosecuted as a standalone crime. Every single person in this country that smokes pot and owns a gun -- that's millions to tens of millions of people -- is guilty of this crime. Y

      • Re: (Score:1, Insightful)

        by Anonymous Coward

        he was an easy target for a quick conviction. Cops aren't there to keep you safe, they're there to arrest people and put them in jail. Those are the numbers people pay attention to. And crime is way, way down. But we keep throwing more money at them. They gotta do something to look productive. It's almost as if having a large, militarized police backed by prosecutors with unlimited resources who often use their careers as a springboard into politics is a bad thing....

        Crime is NOT way, way down. Prosecution is way, way down due to activist DAs. The best way to make it looks like crime is down is to pretend like it doesn't exist.

    • Given how some "crypto bros" are still basically free...He probably forgot to bribe all the politicians.

  • But it's too little too late.
  • Anyone know the addresses he had?

    Back in the 1990s I had 199.190.120.x and since my ISP shut down years ago I have never seen those IPs used by anyone again. Curious if he had those addresses.

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