Infrastructure engineer gets 32 months for locking his employer out of 3,538 machines
Daniel Rhyne, a former infrastructure engineer, got 32 months in prison for using domain controller tasks to lock out 254 servers and 3,284 workstations. He staged it over 17 days of unauthorized access, and administrators learned of it from password-reset notifications after the tasks ran.
The Watch · Security desk

What happened
- On November 25 he emailed coworkers demanding 20 bitcoin, roughly $750,000 at the time, and threatened to shut down 40 random servers a day for ten days.
- Investigators found that on November 22 he used a hidden virtual machine to look up how to change domain passwords, delete domain accounts and clear Windows logs.
- Rhyne, 57, of Kansas City, Missouri, was arrested in August 2024 and pleaded guilty to his role in the failed extortion plot.
Why it matters
- Who's exposed exposure One administrator account and tasks on one domain controller reached 3,538 machines, so write access to that controller amounts to control of thousands of endpoints.
- What it limits constraint Password-reset notifications fired only once the tasks ran, so alerting on credential changes cannot catch a lockout staged days in advance; detection has to watch task creation on domain controllers.
- Who has to decide decision Rhyne used the claimed deletion of backups as leverage, so recovery plans have to assume an insider with domain rights will go after the backups as well.
- What it sets up precedent Sentences of two years for Curry and 32 months for Rhyne give employers a working reference for what prosecuting insider extortion produces.
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Rhyne's unauthorized access ran from November 8 to November 25, according to court documents [3]. The criminal complaint puts discovery at the end of that span. "On or about November 25, 2023, at approximately 4:00 p.m. EST, network administrators employed at Victim-1 began receiving password reset notifications for a Victim-1 domain administrator account, as well as hundreds of Victim-1 user accounts," the complaint reads [8]. It continues: "Shortly thereafter, the Victim-1 network administrators discovered that all other Victim-1 domain administrator accounts were deleted, thereby denying domain administrator access to Victim-1's computer networks" [9].
The endpoint lockout went through local accounts. Tasks reset two local admin accounts to "PsPasswd," cutting off 254 servers, and reset two more admin accounts, cutting off 3,284 workstations [4]. In total, tasks on one domain controller locked 3,538 machines [12].
He searched before he acted. A week before November 22, on his laptop, Rhyne looked up "command line to change local administrator password," "command line to remotely change local administrator password," and "how to remotely shutdown a computer usign cmd" [7]. He later ran local admin resets and remote shutdowns [4][10].
Rhyne was on the inside when this happened. BleepingComputer describes the New Jersey company as the one that employed him [2], and his ransom email went to coworkers [6]. Offboarding would not have closed this route. The reported court documents do not say whether the administrator account he used was his own; they describe the access as unauthorized [3]. I think the control this case points to is an alert on new scheduled tasks on a domain controller, raised while the tasks are still waiting to run. The notifications in the complaint arrived when the tasks executed [8].
The ransom email said server backups had been deleted [6]. The claim is Rhyne's own, made in a demand for money. His threat of 40 server shutdowns a day for ten days came to 400 shutdowns [13]. He did shut down random servers and workstations over several days in December 2023, according to BleepingComputer's account of the court documents [10].
BleepingComputer pairs the case with Cameron Curry, a 27-year-old North Carolina data analyst contractor sentenced in March to two years in prison for extorting his employer, Brightly Software, for $2.5 million [11]. Each man was an insider who tried to extort his own employer [1][11]. The two cases involve different employers and different roles. Rhyne's sentence is eight months longer than Curry's [15].
What to watch
- Any filing that confirms or refutes Rhyne's claim that the server backups were deleted, and what recovery took.
- Whether the sentencing record shows his searches on clearing Windows logs led to logs actually being wiped.
- Further insider extortion prosecutions of the Rhyne and Curry type, where an employee or contractor demands payment from their own employer.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence78
- Adoption
- Not scored
- Hype gap+5
- Incentives25
- Confidence80
Perspective Coverage
5 publishers- Builder
- Builder 19%
- Operator
- Operator 58%
- Investor
- Investor 23%
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
A former core infrastructure engineer at an industrial company headquartered in New Jersey was sentenced to 32 months in prison for locking thousands of devices on his employer's network in a ransomware-style attack.
- [2]
Daniel Rhyne, 57, of Kansas City, Missouri, pleaded guilty to his role in a failed extortion plot targeting the New Jersey company that employed him, after being arrested in August 2024 and released after his initial appearance in federal court.
- [3]
According to court documents, Rhyne remotely accessed the company's network without authorization using an administrator account between November 8 and November 25, and scheduled tasks on the domain controller that changed the administrator account password to "TheFr0zenCrew!", deleted 13 domain admin accounts, and changed the passwords for 301 domain user accounts to "TheFr0zenCrew!".
- [4]
Rhyne added scheduled tasks that changed the password for two local admin accounts to "PsPasswd", blocking access to 254 servers, and changed the password for two more admin accounts, blocking access to an additional 3,284 workstations.
- [5]
Investigators found that on November 22, while planning the extortion plot, Rhyne used his account on a hidden virtual machine to search the web for information on changing domain user passwords, deleting domain accounts, and clearing Windows logs.
- [6]
On November 25, Rhyne sent coworkers a ransom email titled "Your Network Has Been Penetrated," saying server backups had been deleted to make recovery impossible and threatening to shut down 40 random servers daily over the next ten days unless the company paid 20 bitcoin (roughly $750,000 at the time).
- [7]
One week before November 22, Rhyne searched on his laptop for "command line to change local administrator password," "command line to remotely change local administrator password," and "how to remotely shutdown a computer usign cmd."
- [8]
"On or about November 25, 2023, at approximately 4:00 p.m. EST, network administrators employed at Victim-1 began receiving password reset notifications for a Victim-1 domain administrator account, as well as hundreds of Victim-1 user accounts,"
- [9]
"Shortly thereafter, the Victim-1 network administrators discovered that all other Victim-1 domain administrator accounts were deleted, thereby denying domain administrator access to Victim-1's computer networks."
- [10]
Rhyne's scheduled tasks shut down random servers and workstations on the company's network over several days in December 2023.
- [11]
In March, 27-year-old North Carolina data analyst contractor Cameron Curry was sentenced to two years in prison after being found guilty of extorting his employer, Brightly Software (formerly SchoolDude), for $2.5 million.
- [12]
The scheduled tasks blocked access to 3,538 machines in total (254 servers plus 3,284 workstations).
- [13]
The ransom threat of 40 server shutdowns a day for ten days totals 400 shutdowns.
- [14]
Rhyne's unauthorized access window ran 17 days, from November 8 to November 25.
- [15]
Rhyne's 32-month sentence is eight months longer than Curry's two-year (24-month) sentence.
Sources
5 independent publishers whose own reporting we read for this story.
- bleepingcomputer.comEngineer sentenced for locking over 3,000 devices on employer network
2 articles · October 6, 2026
- cryptopolitan.comDaniel Rhyne jailed 32 months over 20 BTC ransom demand on his employer
1 article · October 7, 2026
- decrypt.coEngineer Gets 32 Months for Bitcoin Extortion Plot Against His Own Employer
1 article · October 7, 2026
- news.bitcoin.comEngineer Who Sabotaged Employer for Bitcoin Ransom Gets Prison Time
1 article · October 7, 2026
- scworld.comFormer engineer sentenced for ransomware-style attack on employer
1 article · October 7, 2026
Topics and entities
Entities
- Michael A. Shipp
- Federal Bureau of Investigation
- Bitcoin
- U.S. Attorney's Office for the District of New Jersey
- Brightly Software