Hacker Jailed Over Unprecedented PowerSchool Data Breach

  • Matthew Lane, 20, has been sentenced to four years in federal prison for a massive cyberattack on education technology giant PowerSchool.
  • The breach is considered the largest exposure of student data in history, compromising the sensitive information of 60 million students and 10 million educators.
  • In addition to prison time, Lane was ordered to pay over $14 million in restitution and a $25,000 fine.
  • Despite claiming remorse, prosecutors described Lane as a sophisticated cybercriminal motivated by greed, with millions in extorted funds still missing.

Teen Hacker Sentenced in Historic PowerSchool Breach

WORCESTER, MASSACHUSETTS – In a stunning conclusion to a yearlong cybercrime saga, 20-year-old Matthew Lane was sentenced to four years in federal prison for orchestrating a devastating cyberattack against PowerSchool. The breach compromised the personal data of tens of millions of students and teachers, marking a dark new chapter in digital security.

Lane, who was a teenager when he committed the crime, pleaded guilty to charges including cyber extortion and aggravated identity theft. In court, he expressed a surprising sentiment, telling U.S. District Court Judge Margaret Guzman he was “thankful I got caught,” attributing his actions to an “extremely dark time in my life.”

A Crime of Unprecedented Scale

The cyberattack, which began in September 2024, involved Lane hacking into PowerSchool’s network and stealing a vast trove of sensitive records. The stolen data included the Social Security numbers of children as young as five. Following the theft, Lane and a co-conspirator attempted to extort PowerSchool for $2.85 million in Bitcoin, threatening to “destroy your company” and leak the data “worldwide” if their demands were not met.

The total damages from the attack exceeded $14 million, factoring in the ransom payment and the cost of providing identity theft services to the millions of victims.

“A Double Life”

While Lane’s defense painted a picture of a lonely and depressed teenager who fell “through the rabbit hole,” prosecutors presented a starkly different image. Assistant U.S. Attorney Kristen Kearney described Lane as a “sophisticated and experienced cybercriminal” who lived “a double life.”

She argued the attacks were not a teenage mistake but “carefully planned” operations motivated by greed. Lane sought designer clothes, jewelry, and funds to “host parties at extravagant Airbnbs.” Furthermore, Kearney revealed this was not his first offense, accusing him of at least eight cyberattacks since 2021. Prosecutors also noted that while Lane returned $160,000 to the government, approximately $3 million remains unaccounted for.

A Cautionary Tale for the Digital Age

Judge Guzman acknowledged Lane’s youth but framed the case as a warning to parents about the unchecked dangers of technology. She noted that providing children with computers and phones without proper guardrails can lead to devastating consequences, stating Lane won’t be the last to exhibit “bravado behind the screen of a computer.”

After the sentence was handed down, a tearful Lane was embraced by friends and family. PowerSchool released a statement appreciating the efforts of law enforcement in bringing him to justice and reaffirming its commitment to safeguarding user data.

Image Referance: https://www.the74million.org/article/powerschool-hacker-thankful-i-got-caught-sentenced-to-4-years-in-prison/

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