Teen Accused of MGM and Caesar Casinos Hacks Released into Parents’ Custody

A Clark County Family Court judge has ruled against prosecutors’ request to keep in custody a 17-year-old who allegedly played a major role in cyberattacks against major Las Vegas casinos.

The Attacks

From August to October 2023, hackers linked to Scattered Spider (also known as Octo Tempest, UNC3944, and 0ktapus) infiltrated the networks of MGM Resorts and Caesars Entertainment, according to police officials.

MGM disclosed the breach in an SEC filing in September 2023, and acknowledged major disruptions to its hotel and casino operations. The company later estimated losses of more than $100 million.

Caesars admitted it paid ransom of about $15 million to restore operations. Hackers used social engineering and deployed BlackCat/ALPHV ransomware.

The Arrest

Following an investigation by the Las Vegas Metropolitan Police Department (LVMPD) and the FBI’s Las Vegas Cyber Task Force, the teen surrendered on Sept. 17 to the Clark County Juvenile Detention Center.

LVMPD described the case as involving “highly sophisticated network intrusions.” Detectives charged the teen with:

• Three counts of obtaining and using personal identifying information to harm or impersonate
• One count of extortion
• One count of conspiracy to commit extortion
• One count of unlawful acts regarding computers

Prosecutors claim he still controls about $1.8 million in Bitcoin, funds stolen from the attacks that investigators have yet to recover.

Court proceedings

Judge Dee Smart Butler from the Eighth Judicial District Court, Family Division, presided over the hearing, according to BleepingComputer. Prosecutors wanted the court to hold the teen in custody because of the scale and damage of the attacks. They also wanted to transfer the case to an adult criminal court.

The defense argued that he had no prior criminal record and could remain under strict parental supervision. Judge Butler agreed, ordering his release with conditions:

• He must live with his parents at a registered address
• He cannot leave Clark County, Nevada
• He can only use the internet for educational purposes
• He faces tight restrictions on electronics and phone use
• Any violation triggers immediate detention

Possible punishments

The suspect faces six charges and may still face additional counts if prosecutors are successful in transferring the case to adult court. If that happens, the teen could face far harsher penalties than those available under juvenile law.

The next hearing will determine whether the case moves forward in family court or in adult criminal court.