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Bail of $30,000 set for UK cyber expert Marcus Hutchins Bail of $30,000 set for UK cyber expert Marcus Hutchins
(about 5 hours later)
A judge in the US state of Nevada has recommended the release on $30,000 (£23,000) bail of a UK computer expert. US prosecutors say a British computer expert has admitted to creating software that harvests bank details.
Prosecutors told the court that Marcus Hutchins had admitted to writing and selling malware code designed to steal banking details. But Marcus Hutchins' own lawyer says he denies six charges of creating and distributing the Kronos malware.
His lawyer said he denied all the charges against him. The 23-year-old from Ilfracombe, Devon, who helped stall the WannaCry cyber-attack which hit the NHS, was arrested on Wednesday in Las Vegas.
Mr Hutchins 23, from Ilfracombe in Devon, came to prominence after he stalled the WannaCry cyber-attack that hit the NHS in May. He was granted $30,000 (£23,000) bail, but will spend the weekend in prison after not being able to pay on Friday.
Federal judge Nancy Kobbe ordered Mr Hutchins' release on bail pending his next appearance in Wisconsin on 8 August subject to a lengthy list of conditions including the surrender of his passport and monitoring by GPS.
However, Mr Hutchins will have to spend the weekend in jail after failing to post $30,000 bail before the court closed on Friday.
As he left the courtroom Mr Hutchins was ordered to walk with his hands behind his back but he was not shackled.As he left the courtroom Mr Hutchins was ordered to walk with his hands behind his back but he was not shackled.
No members of his family were present in court but defence lawyer Adrian Lobo presented the judge with a bundle of letters. No members of his family were present, but defence lawyer Adrian Lobo presented the judge with a bundle of letters.
She said they were from friends and relatives showing support for a client who had never been in trouble with the law in the US or the UK.She said they were from friends and relatives showing support for a client who had never been in trouble with the law in the US or the UK.
Ms Lobo told the BBC: "He's pled not guilty. He is standing by that and he fights the charges and we intend to fight the case in Wisconsin."Ms Lobo told the BBC: "He's pled not guilty. He is standing by that and he fights the charges and we intend to fight the case in Wisconsin."
She described the federal indictment against him as "pretty flimsy, it's pretty slim compared to what we normally see in a United States indictment."She described the federal indictment against him as "pretty flimsy, it's pretty slim compared to what we normally see in a United States indictment."
Earlier in court government lawyer Dan Cowhig said Mr Hutchins had admitted in an interview that he wrote the code for a malware programme known as Kronos and indicated that he had sold the code. Prosecutors told a Las Vegas court on Friday that Mr Hutchins had been caught in a sting operation when undercover officers bought the code.
Mr Cowhig said the US government had evidence of internet chat room logs in which the defendant allegedly discussed splitting the proceeds of the sale with an associate and later complained about the amount he had received. They claimed the software was sold for $2,000 in digital currency in June 2015.
Dan Cowhig, prosecuting, also told the court that Mr Hutchins had made a confession during a police interview.
"He admitted he was the author of the code of Kronos malware and indicated he sold it," said Mr Cowhig.
The lawyer claimed there was evidence of chat logs between Mr Hutchins and an unnamed co-defendant - who has yet to be arrested - where the security researcher complained of not receiving a fair share of the money.
At the sceneAt the scene
By James Cook, BBC North America correspondentBy James Cook, BBC North America correspondent
There was no missing Marcus Hutchins as he was brought into courtroom 3C of the US District Court in Las Vegas.There was no missing Marcus Hutchins as he was brought into courtroom 3C of the US District Court in Las Vegas.
The "surfer who saved the world" was wearing a bright yellow custody-issue T-shirt and trousers along with luminous orange socks and sandals.The "surfer who saved the world" was wearing a bright yellow custody-issue T-shirt and trousers along with luminous orange socks and sandals.
Judge Nancy Kobbe was sympathetic to the defendant's plea to be released on bail, waving away a claim from a government lawyer that the cyber-security expert posed a risk to the public because he had gone shooting on a gun range popular with tourists.Judge Nancy Kobbe was sympathetic to the defendant's plea to be released on bail, waving away a claim from a government lawyer that the cyber-security expert posed a risk to the public because he had gone shooting on a gun range popular with tourists.
Mr Hutchins was so softly spoken that several times Ms Kobbe had to ask him to raise his voice.Mr Hutchins was so softly spoken that several times Ms Kobbe had to ask him to raise his voice.
Mr Hutchins was arrested at Las Vegas airport minutes before he was due to fly home from a week of partying in the desert city Ms Lobo said Mr Hutchins denied he was the author of the malware and said he would plead not guilty to all of the charges, which date between July 2014 and July 2015.
He had been attending a cyber-security conference. "He has dedicated his life to researching malware, not trying to harm people," she said. "Use the internet for good is what he has done.
Among his fellow computer experts he is regarded as a hero for his role in stopping the so-called WannaCry virus that hit the NHS before spreading to 150 countries. "He was completely shocked, this isn't' something he anticipated. He came here for a work-related conference and he was fully anticipating to go back home and had no reason to be fearful of coming or going from the United States."
Mr Hutchins has been accused of involvement with Kronos - a piece of malware used to steal banking logins from victims' computers. Mr Hutchins came to prominence in May this year after finding a "kill switch" to stop the WannaCry ransomeware attack that hit the NHS, as well as other organisations in 150 countries.
The FBI arrested him on Wednesday. Also known as "MalwareTech" online, Mr Hutchins was hailed as an "accidental hero" after registering a domain name to track the spread of the virus, which actually ended up halting it.
WannaCry spread rapidly through computer systems around the world, in an unprecedented outbreak that began on 12 May. Mr Hutchins, who works for Los Angeles-based computer security firm Kryptos Logi, had been in Las Vegas to attend the Black Hat and Def Con cyber-security conferences.
Shortly afterwards, Mr Hutchins was thrust into the limelight after he found a way to stop it from spreading. He was arrested at Las Vegas airport minutes before he was due to fly home.
He had been in Las Vegas attending the Black Hat and Def Con cyber-security conferences but activity on his Twitter feed - usually highly active - ceased two days ago. District judge Nancy Koppe, who was presented letters of support from Mr Hutchins' cyber-security colleagues, ordered his release on bail as he had no criminal history and because the allegations dated back two years.
The US Department of Justice (DoJ) said in a statement: "Marcus Hutchins... a citizen and resident of the United Kingdom, was arrested in the United States on 2 August, 2017, in Las Vegas, Nevada, after a grand jury in the Eastern District of Wisconsin returned a six-count indictment against Hutchins for his role in creating and distributing the Kronos banking Trojan. However, friends and family were unable to raise the bond money before the court closed on Friday, so he will not be released until Monday.
"The charges against Hutchins, and for which he was arrested, relate to alleged conduct that occurred between in or around July 2014 and July 2015." The conditions of his bail include him not being allowed to access the internet and to stay in Clark County, Nevada, and within the Eastern District of Wisconsin, where he will appear in court on Tuesday.
He must also be monitored by GPS and surrender his passport.
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