Get All Access for $5/mo

'We Expect to Leak the Data': Reddit Hackers Demand $4.5 Million and API Pricing Changes But Say They Doubt The Company Will Pay The ransomware group BlackCat (also known as ALPHV) is threatening to release 80 gigabytes of data if Reddit doesn't meet the hackers' demands.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

Sharaf Maksumov | Shutterstock
Reddit hackers are demanding $4.5 million and policy changes.

It hasn't been an easy month for Reddit. Last Monday, thousands of Reddit forums went dark in protest against the company's new API pricing that could cause third-party apps that use the platform, like Apollo, to shut down.

Now, Reddit is the target of the hacking group BlackCat (also known as ALPHV), who claim to have stolen 80 gigabytes of data (which they say they will leak if Reddit doesn't pay $4.5 million), the hackers wrote in a dark web post on Saturday, shared by researcher Dominic Alvieri on Twitter.

The ransomware group claims it was behind the February phishing attack on Reddit, where the stolen data came from. A spokesperson for Reddit has confirmed to Entrepreneur that the recent threat by BlackCat relates to the February incident and is "not a new hack."

The spokesperson added that user data such as passwords were not accessed, but the hackers did "gain access to some internal documents, code, and some internal business systems." Reddit did not indicate whether it intends to pay the ransom. BlackCat, however, is "very confident" that Reddit will "not pay any money for their data," the group wrote in the post: "We expect to leak the data."

Related: Amazon Ring Is the Latest Target of Notorious Ransomware Gang

It's not just millions that the hackers are after, either. In addition to the $4.5 million ransom, BlackCat has demanded that Reddit undo the policy changes to its API, which sparked the site-wide protest.

However, some experts are skeptical of the ransomware group's incentive to support the protestors' cause.

"I suspect that ALPHV doesn't actually care about the API pricing," Brett Callow, threat analyst at cybersecurity firm Emsisoft told CNN. "They simply want future victims to see how much ongoing harm they can cause to increase the likelihood of them deciding that payment is the least painful option."

Related: Cyber Attacks Are on the Rise in Hospitals, Incidences Have More Than Doubled in 5 Years

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

Growing a Business

How to Build, Grow and Make Money With Ecommerce

To grow your online business, you need to develop a strategy and invest your time wisely. These actionable tips can attract customers and increase online revenue.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Franchise

Kick-Start Your Small Business With These Cost Effective Strategies

Starting a small business is an exciting adventure, brimming with both opportunities and challenges. A key to success is effectively managing costs from the outset.