
Written by a model from the transcript; not yet reviewed.
This episode details the case of Nicholas Sharp, a cloud engineer at networking giant Ubiquity who executed a massive data theft and extortion scheme against his own employer. Driven by ego, perceived underappreciation, and a desire to expose lax internal security, Sharp used his high-level credentials and a VPN to download gigabytes of confidential source code and server logs in December 2020. He then attempted to extort the company for 25 Bitcoin, posed as a whistleblower to leak the breach details to journalist Brian Krebs, and lied to the FBI when caught. The scheme ultimately wiped $4 billion off Ubiquity's market capitalization and landed Sharp a six-year prison sentence after he pleaded guilty to multiple federal charges in 2023.
The episode opens with the host’s casual introduction and a brief, humorous exchange about anonymity.
Nick escalates to extortion, threatening to release stolen data, but the plan collapses when Keybase removes his uploads and law enforcement steps in.
Nick devises a plan to exploit his privileged access, choosing a VPN and mapping out how to exfiltrate data covertly.
Nick carries out the data theft, downloading private repositories and attempting to cover his tracks, but encounters technical setbacks.
The FBI investigates, discovers evidence on Nick’s devices, and ultimately arrests him on multiple charges.
Nick attempts to expose Ubiquiti’s security failures, sparking a PR crisis and a significant drop in the company’s stock value.
Nick pleads guilty to several counts, argues his motives were defensive, but receives a six‑year prison sentence.
The episode concludes with production credits, a brief joke, and the signature Darknet Diaries outro.
Climbing Ranks at Ubiquityinsight
Nick rose up the ranks at Ubiquity by leveraging a high salary and craving access to sensitive systems, but he grew frustrated when his pay stagnated and his warnings were ignored.
In the early morning hours, Nick logged into Ubiquity's AWS cloud environment to find the master key that unlocked access to all other company credentials.
The ISP Outage Scarestory
While cloning sensitive repositories behind a VPN, Nick's internet dropped for thirty minutes, causing a frantic call to his ISP and raising the risk of an unmasked IP leak.
The 25 Bitcoin Demandstrategy
Nick sent a ransom note to senior executives demanding 25 Bitcoin to prevent the publication of stolen source code and to sell a hidden backdoor.
Forensics Find the MacBookdata
While Nick handed over his company laptop, forensics investigators examined his home router and discovered Layer 2 MAC address connections from a separate personal MacBook during the attack.
Stock Plummets Four Billiondata
Following Krebs publishing the whistleblower story, investors panicked, causing Ubiquity's stock to crash by 20 percent and wiping out $4 billion in market capitalization.
“I was gonna try something I'd never done before and steal food.”
“He thought this would both fix the security problems he sees but also pay him properly for the security problems he's discovered.”
“The news hit hard and fast. Customers were pissed off all over again.”
“I got carried away, sure, but I had really good intentions.”
Nickolas Sharp worked for Ubiquiti, a company that makes networking equipment. He noticed that there were some security problems at work. He tried to point them out, but didn't feel like he was being listened to enough. What do you do when the company you work for isn't securing their software up to your standards? Well, he thought he needed to teach them a lesson, but in the end, he learned an even bigger lesson. SponsorsThis show is brought to you by Drata https://drata.com/darknetdiaries. Drata is the trust management platform that uses AI-driven automation to modernize governance, risk, and compliance, helping thousands of businesses stay audit-ready and scale securely. Learn more at drata.com/darknetdiaries https://drata.com/darknetdiaries. This show is sponsored by Material Security https://material.security. Your cloud office (think Google Workspace or Microsoft 365) is the core of your business, but it’s often protected by scattered tools and manual fixes. Material is a purpose-built detection and response platform that closes the gaps those point solutions leave behind. From email threats to misconfigurations and account takeovers, Material monitors everything and steps in with real-time fixes to keep your data flowing where it should. Learn more at https://material.security. Support for this show comes from ThreatLocker https://threatlocker.com/Darknet. ThreatLocker is a Zero Trust Platform that gives organizations control over what can run and what users and devices can access. It combines prevention with real time detection and automated response, helping security teams stop unauthorized activity and quickly contain compromised machines. Learn how ThreatLocker can strengthen your defenses at threatlocker.com/Darknet https://threatlocker.com/Darknet. View all active sponsors. https://darknetdiaries.com/sponsors/ SourcesFull list of sources on the show page: https://darknetdiaries.com/episode/178/
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