A newcomer to the cyber extortion world has wasted little time making its presence felt.
Known as Embargo, the ransomware network has been linked to more than $34 million in crypto ransom collections since spring 2024, placing it among the most profitable operators in the underground market.
Rather than launching every attack themselves, Embargo runs on a ransomware-as-a-service model, renting its malware to partners who carry out breaches. Analysts say this strategy has enabled the group to scale quickly, with major U.S. healthcare systems, pharmaceutical distributors, and other essential service providers among its victims. Hospitals in Georgia and Idaho, along with American Associated Pharmacies, have all reported attacks tied to the gang, with some ransom notes demanding over $1 million.
Signs of an Old Threat in New Clothing
Investigators suspect Embargo could be a continuation of BlackCat (ALPHV), a high-profile ransomware collective that vanished earlier this year in what many called an exit scam. The link is supported by similarities in programming language (Rust), website structure, and blockchain wallet connections. TRM Labs has traced overlapping financial trails between the two, suggesting shared infrastructure behind the scenes.
Millions in Crypto Sitting Idle
Interestingly, nearly $19 million of Embargo’s takings remain untouched in dormant wallets. Experts believe this could be a tactic to evade immediate tracing or a calculated wait for better laundering conditions. Funds have been seen moving through multiple wallet layers, risky crypto exchanges, and even sanctioned platforms such as Cryptex.net. From May to August alone, over $1 million passed through Cryptex, according to TRM tracking.
Targeting the High-Cost Downtime Sector
While other ransomware outfits tend to cast a wide net, Embargo focuses on industries where every minute of disruption comes with a steep price tag. Healthcare networks, manufacturing plants, and business service providers have all been singled out. Their approach often includes “double extortion”—locking victims out of their systems while threatening to leak sensitive files if the ransom isn’t paid. In some cases, the group has escalated pressure by naming individuals or releasing partial data online.
International Policy Response Intensifies
Governments are taking notice. The UK is preparing to outlaw ransom payments entirely for public sector agencies and critical infrastructure operators such as hospitals, power grids, and municipal services. Businesses outside these categories would still be allowed to pay but would need to report the incident within 72 hours and provide a detailed follow-up report within 28 days.
While Chainalysis data shows a 35% drop in ransomware revenue globally last year—the first decline since 2022—security experts warn that groups like Embargo, with their calculated targeting and suspected deep roots, could easily reverse that trend.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/new-ransomware-threat-targets-u-s-hospitals-and-critical-services/