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Ep 46: XBox Underground (Part 2)

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September 03, 2019

TLDR: The Xbox hacking scene and a group of individuals pushing their luck too far was explored in a two-part series. Learn more about stocks from MyWallSt and visit mywallst.com/darknet, listen to ad choices at podcastchoices.com/adchoices.

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  • Xbox Underground Hacking Crew Steals Xbox One SpecificationsThe Xbox Underground hacking crew gained full access to Microsoft's networks and stole the specifications of the Xbox One, revealing the new hardware and software technology.

    The XBox Underground hacking crew had full access to networks of video game companies including Microsoft and stole the specifications of the new XBox, which was later known as XBox One. The crew only focused on stealing video games and source codes, not on stealing personal data or money. Dylan discovered a new folder called Durango and found that it contained internal documents related to the new XBox. Dylan and the other hackers located all the ingredients and blueprints necessary to build the hardware and software of the new XBox, which was code-named Durango at the time. The crew found out that Microsoft was using a Supermicro case instead of the previous Mac Pro G5 used for XBox 360.

  • Hackers build counterfeit Xbox, highlights security concernsCompanies need to invest in better security measures and be vigilant in sharing sensitive information. Ethical hacking and responsible behavior are crucial for avoiding legal issues and negative consequences.

    A group of hackers reverse-engineered the software of an Xbox to figure out what hardware it would take and were able to build a counterfeit Durango, which they sold to another hacking group for $5000. However, the counterfeit console never reached its destination and disappeared. This incident suggests that security is an ongoing concern for all types of companies and technology manufacturers, and it is important for them to invest in better security measures. In addition, it is crucial to be vigilant in sharing sensitive information with other people, even if they seem trustworthy. Dylan's decision to sell a second Durango under his username on eBay could lead to potential legal issues and negative consequences, which highlights the importance of ethical hacking and responsible behavior.

  • The consequences of hacking can be severeEngaging in illegal hacking activities can lead to investigations, job losses, and legal consequences, while also risking the trust and security of companies and partners. It is important to be cautious and aware of the potential repercussions.

    Hacking can have serious consequences and lead to investigations, job losses, uncomfortable conversations, and millions of dollars spent on mitigating the damage. The group's actions not only put themselves at risk but also the security and trust of Microsoft's partners. Nathan Leroux, who was responsible for creating in-game coins, got arrested, and became scared straight after being interrogated by the FBI. The group started growing apart, and some members moved on to different things while a few others, including Anthony and Austin, continued creating FIFA coins. It is important to be cautious when engaging in such activities because the consequences can be severe.

  • Hackers and Snitches: Inside the World of CybercrimeCybercrime is a complex and risky endeavor that often involves trust and betrayal among the perpetrators. The consequences of getting caught can be severe, including indictments, arrests, and even prison sentences.

    A group of hackers stole source code for FIFA and created FIFA coins to sell for profit, while Microsoft investigated an eBay account selling Durangos and eventually traced it back to an individual in Perth, Australia. A hacker named Justin was running a scam operation where he tricked Cisco into processing an RMA for him even though he didn't have a router to send back. Despite sharing information with him, Dylan and David were unsure if Justin was an informant. David cancelled his plan to attend the annual Defcon conference in Las Vegas after an indictment was created in the US for him and his co-conspirators. It was revealed that there was a snitch in the group, known as Person A, who provided evidence to the feds and was part of the crew.

  • The Power of Determination: One Man's Journey into MicrosoftPursuing your passions may lead you to take risks but persevering can ultimately help you achieve your dreams.

    Arman's obsession and determination to work at Microsoft led him to infiltrate the company's campus using a cloned employee badge. He spent a year familiarizing himself with the layout and eventually stumbled upon an official Microsoft Xbox One prototype, which he stole and sold to members of the Xbox Underground. Despite the risk, he managed to successfully steal two more prototypes and secure logins to the Xbox Developer Network in exchange for money. Though his actions were illegal, Arman's passion for technology led him to ultimately get a job at a Microsoft vendor as a quality assurance tester, showing the power of dedication and perseverance.

  • Hackers receive reward and continue to play with stolen software despite investigation and consequencesEngaging in illegal hacking activities can have serious legal consequences and it is important to understand the risks involved before attempting such actions.

    The hacker Dylan called Epic to disclose his involvement in the hack and even asked for a reward which he got in the form of a poster. Sanad was still tinkering with the stolen Dev Kits and playing games. He received a message from a stranger who had the stolen software and even sent him a picture of the Durango. The stranger had found a way to fix the video issue which Sanad couldn't resolve. Dylan and Sanad continued to play with and explore the stolen software, even as Microsoft investigated the theft and apprehended one of the thieves. The story highlights the dangers of engaging in such activities and the potential legal consequences of such actions.

  • How a Circle of Trust can Protect You from a Wrongful Allegation.Surrounding oneself with trustworthy friends and associates, and vetting each circle to ensure shared values and principles, is crucial to protect oneself from false allegations and serious implications.

    Sanad's house was raided by the FBI on the suspicion of stealing millions of dollars, but it turned out that someone in their circle had been an informant, tipping off the FBI and providing them with chat logs and screenshots. The level of anxiety that Sanad experienced was through the roof as the FBI began confiscating everything from him, including around twenty Xbox dev kits and three retail Xboxes. This incident highlights the importance of being careful about who one trusts, especially when it comes to sensitive matters. It's essential to surround oneself with people who share the same values and principles and are trustworthy, as people with misguided intentions are everywhere, and one wrong move could have serious implications.

  • Repercussions of Hacking and Hypocrisy in Law EnforcementHacking may seem thrilling, but careless decisions can have consequences. Law enforcement can be hypocritical, resulting in unfair treatment. Different individuals' actions can interact and have unexpected repercussions.

    The story highlights that even though Dylan was a hacker, he was still a naive kid that made careless decisions. His thrill for hacking into places led him to continuously partake in it, even after being under police scrutiny. Moreover, the story exemplifies the hypocrisy within the law enforcement system, as the agents overlooked the marijuana that Sanad had but seized other belongings for piracy. The story also reflects the irony of the situation where the agents denied Sanad access to his prescribed anxiety medication but left his pot behind. Overall, the story describes how individuals with different roles and backgrounds interacted and highlights the repercussions of their actions.

  • The Risks and Consequences of Engaging in Illegal Activities.Engaging in illegal activities may seem enticing but can have severe consequences, such as losing all your hardware, getting arrested, and negatively impacting your life for years. Stay on the right side of the law.

    Getting caught for illegal activities can have serious consequences such as losing all your hardware and even getting arrested. Even though Dylan was a skilled hacker and could afford expensive hardware at the age of 17, he was arrested by the police after they found evidence of his illegal activities. Dylan was not cooperative with the police even after being arrested, and this only made the situation worse for him. The arrest scared him and he stopped hacking for a while. Ultimately, engaging in illegal activities has real risks and can lead to severe consequences that can affect an individual's life for years to come.

  • The Perils of Hacking and Its ConsequencesHacking has severe legal consequences, and those caught may face probation and jail time. Cooperation with authorities can lead to more lenient sentences, but boredom and betrayal can make the consequences feel worse.

    David, a hacker from Canada, was caught at the border with his father and was taken into custody in a jail in Delaware. He cooperated with the police and took a plea deal to educate companies he hacked on how he did it. Meanwhile, in New Jersey, Sanad was put on probation with strict conditions like GPS monitored ankle monitor and no internet access. He got bored quickly and eventually got a copy of the indictment against him which revealed that Justin, the guy they all knew from Wilmington, Delaware, reported him. Sanad was upset but not surprised. The boredom of his probation and Justin's betrayal made things worse for Sanad.

  • Addressing Mental Health Challenges for People Facing Jail TimeProviding support and resources to individuals facing jail time is essential in preventing desperate measures and promoting rehabilitation over punishment for non-violent crimes.

    The fear of going to jail can be overwhelming and lead people to take desperate measures. This was exemplified by Nathan who stabbed himself multiple times rather than face jail time. It is important to recognize and address the mental health challenges that people on probation or facing jail time may experience. It is also important to recognize that sometimes individuals may feel trapped and without options, and providing them with support and resources could potentially prevent tragic outcomes. It's crucial for society to understand that rehabilitation and support is often a better solution than punishment and social ostracism, especially for non-violent crimes.

  • Legal Consequences of Cybercrime and the Search for Safety.Cybercrime can lead to lengthy prison sentences and legal battles. Respect intellectual property rights and handle sensitive information carefully to avoid legal repercussions. Citizenship can provide a sense of safety during legal proceedings.

    The three friends, David, Sanad, and Nathan, end up pleading guilty to conspiracy, unlawful access to secure computer network, and criminal copyright infringement, and serve their sentences in prison. Meanwhile, Dylan faces legal battles for three years and decides to flee to the Czech Republic, where he has citizenship, to avoid extradition. Although he lost his freedom due to the legal proceedings, he found a new sense of safety in a country where he has roots. The consequences of unauthorized access to computer networks and copyright infringement can lead to severe consequences, such as lengthy prison sentences and legal battles. It is important to respect intellectual property rights and handle sensitive information with care to avoid legal repercussions.

  • Overcoming Legal Troubles and Moving ForwardDon't let your past mistakes define you. Focus on making a positive impact in the present and take legal measures to avoid potential trouble.

    Dylan's mother was charged and sent to prison for 18 months for something she didn't even do. Dylan himself never served prison time despite being accused of hacking. He now works as a legal security researcher and has no fear of police coming after him because he's doing everything legally. Dylan emphasizes that we shouldn't be judged by our past but by our present. Austin, a co-conspirator of Sanad's hacking circle, was never sentenced and was believed to have bribed his way out of jail. Anthony, on the other hand, was left with a mountain of legal problems.

  • The Costs of Unethical and Illegal ActionsMaking a quick buck through illegal means can have far-reaching negative effects, not just on oneself but also on loved ones. Prioritize personal values and integrity over financial gain. Support those who have been incarcerated.

    The consequences of illegal actions can have a severe impact on individuals and families, leading some down a path of depression, substance abuse, and even death. Though the allure of quick money may seem tempting, it is important to consider the long-term consequences of unethical and illegal activities. In addition, it is crucial for loved ones to provide support and understanding to those who have been incarcerated, as their experience can be isolating and traumatizing. Ultimately, it is important to prioritize personal values and integrity over financial gain, as the cost of illegal actions can far outweigh any potential benefits.

  • The Impact of Probation Officers on Post-Prison LifeProbation officers should have empathy towards clients during re-entry and the criminal justice system needs to better guide individuals who have served their time instead of creating obstacles that could lead to recidivism. Employers can also play a role in protecting their employees from potential harassment by law enforcement.

    Probation officers can have a significant impact on post-prison life. In the case of Sanad, his probation officer imposed strict rules and unnecessary restrictions, which led to frustration and eventually triggered a visit by federal agents. This highlights the importance of probation officers having empathy towards their clients and recognizing the difficulties they face during re-entry into society. Sanad's experience also shows that employers can play a role in protecting their employees from potential harassment by law enforcement. Overall, the criminal justice system needs to better support and guide individuals who have served their time, instead of creating additional barriers that could lead to recidivism or unnecessary scrutiny.

  • The Harsh Realities of Probation: Pushing Individuals Towards Drug AbuseProper support and rehabilitation are crucial in helping individuals recover from drug abuse. Probation officers must understand the gravity of the situation and provide necessary assistance to prevent exacerbating the problem. Denying help can often cause individuals to seek drugs as an escape.

    Sanad's experience shows how probation officers can sometimes push individuals to their breaking point, causing severe depression and leading to drug abuse. The lack of understanding and support from probation officers can worsen the situation, causing individuals to feel trapped and helpless. Sanad's attempt to overdose on heroin and his struggle with addiction highlights the importance of proper rehabilitation and support to help individuals recover from drug abuse. Denying medical assistance and rejecting plea for help can often push individuals to seek drugs as an escape. It is important for probation officers to understand the gravity of the situation and provide adequate support to individuals who are struggling with addiction.

  • From Addict to Sober and the Evolution of Gaming Security MeasuresSanad's inspiring story shows the harsh reality of addiction and power of redemption. Evolving gaming security measures are imperative in preventing criminal activities and ensuring a safe gaming environment.

    Despite the difficulties of addiction and legal repercussions, Sanad was able to turn his life around and has been sober for a year. The XBox hacker scene in the 2010s was a special and wild era, but security measures have tightened significantly since then. While progress may still be made behind closed doors, the focus on security is undeniably necessary. The story serves as a reminder of the dangers of addiction and the possibility of redemption, as well as the evolving landscape of technology and security in the gaming industry.

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