Former Employee Pleads Guilty to Hacking, Extorting Industrial Company

Daniel Rhyne faces up to 15 years in prison for cyberattack and ransom demands against his former employer.

Apr. 3, 2026 at 10:04pm

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An extreme close-up photograph of a computer server hard drive, its metallic surface reflecting the harsh light of a direct camera flash, conveying a sense of the technical complexity and high-stakes nature of the cybercrime case.A former employee's brazen cyberattack on his former company's critical infrastructure exposes the growing threat of insider threats to industrial operations.Kansas City Today

A former employee of a major U.S. industrial company has pleaded guilty to hacking the company's computer network and extorting its employees, threatening to shut down servers unless a $750,000 ransom was paid in bitcoin. Daniel Rhyne, 59, of Kansas City, Missouri, admitted to executing an unauthorized remote access scheme and deploying malicious code to damage the company's systems.

Why it matters

This case highlights the growing threat of insider threats and the need for robust cybersecurity measures, even against former employees with access to sensitive systems. The extortion attempt also raises concerns about the vulnerability of companies to ransomware attacks and the challenges in combating cryptocurrency-based demands.

The details

According to court documents, Rhyne, who previously worked as a core infrastructure engineer at the unnamed New Jersey-based industrial company, took steps in November 2023 to hack the company's network. This included initiating unauthorized remote desktop sessions, deleting network administrator accounts, changing passwords, and scheduling tasks to shut down multiple servers. On November 25, 2023, Rhyne began deploying these malicious tasks and sent an extortion email to employees, threatening to continue the server shutdowns unless he received approximately 20 bitcoin, worth around $750,000 at the time.

  • In or around November 2023, Rhyne took steps to execute his hacking and extortion scheme.
  • On November 25, 2023, Rhyne began deploying the scheduled tasks to damage the company's network and sent the extortion email.
  • On April 1, 2026, Rhyne pleaded guilty to the charges in federal court in Trenton, New Jersey.

The players

Daniel Rhyne

A 59-year-old former employee of a U.S.-based industrial company who pleaded guilty to hacking the company's computer network and extorting its employees.

Victim-1

The U.S.-based industrial company headquartered in New Jersey that was the target of Rhyne's hacking and extortion scheme.

Robert Frazer

The U.S. Attorney who announced Rhyne's guilty plea.

Stefanie Roddy

The Special Agent in Charge of the FBI's Newark Field Office, which investigated the case.

Stephen A. Cyrus

The Special Agent in Charge of the FBI's Kansas City office, which assisted in the investigation.

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What they’re saying

“This case highlights the growing threat of insider threats and the need for robust cybersecurity measures, even against former employees with access to sensitive systems.”

— Robert Frazer, U.S. Attorney

What’s next

Rhyne is scheduled to be sentenced on July 15, 2026, where he could face up to 15 years in prison and significant fines.

The takeaway

This case underscores the importance of companies maintaining tight control over network access, even for former employees, and the need for robust cybersecurity measures to protect against insider threats and extortion attempts. It also highlights the challenges in combating cryptocurrency-based ransomware demands.