Following a two-week trial during which the Swede protested his innocence, the Nacka District Court handed down its verdict. Gottfrid was found guilty of hacking, aggravated fraud and attempted aggravated fraud, and was handed a two-year jail sentence.

The decision was unpopular with both the defense and prosecution. The latter felt that the sentence was not harsh enough and the former objected on the basis that the District Court didn’t examine the available evidence in enough detail.

“The important thing is to get the higher court to try the evidence in-depth, something that the lower court definitively didn’t do,” Kristina Svartholm, Gottfrid’s mother, previously told TorrentFreak.

In July it was announced that the case would go to appeal and earlier this month the process took place. The Court of Appeal heard testimony from Tor developer and former Wikileaks spokesman Jacob Appelbaum who argued that Gottfrid’s theory – that his computer had been taken over and abused remotely – was a sound one.

A few moments ago the Court of Appeal handed down its decision and it was mixed fortunes for the 28-year-old.

The Court upheld the guilty verdict in the hacking of IT company Logica, but overturned the guilty verdict handed down in respect of the breach at the Nordea bank.

As a result the two-year jail sentence handed down earlier in 2013 was slashed to just one year.

Update: Danish media is now reporting that Gottfrid will be extradited to Denmark to face charges in another unrelated case. He is one of two men suspected of gaining access to driving records and the social security numbers of millions of Danes.

“We already have an arrest warrant and a request for extradition on the Swedish man, and he will be extradited to Denmark within a few days,” said Police Commissioner Hans Erik Raben of Copenhagen Police. An alleged accomplice, a 20-year-old man, is already in custody.

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Gottfrid and a 36-year-old stood accused of hacking into Logica, a Swedish IT company carrying out work for local tax authorities, and local bank Nordea.

Confronted with prosecution evidence which had in part been found on a computer seized from Gottfrid’s apartment in Cambodia last year, the 28-year-old said he believed others had gained access to his equipment.

Just a few moments ago the Nacka District Court handed down its verdict.

The Court said that it had found the prosecution’s case against Gottfrid and his accomplice convincing, since among other things it ruled out the possibility that a third party could have carried out the hacking from the defendants’ computers.

The Court also noted that chat conversations between the defendants showed that in addition to being the perpetrators of the hacking offenses, they also acted in concert.

As a result, Gottfrid was found guilty of hacking, aggravated fraud and attempted aggravated fraud, and sentenced to two years in prison. His 36-year-old accomplice was sentenced to probation.

Earlier this week the Nacka District Court ruled that Gottfrid can also be extradited to Denmark where he is accused of hacking into the mainframes of CSC, a Danish IT company working with the Government.

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Recent information suggests that Gottfrid intends to plead “not guilty” to claims that between January 2010 and April 2012 he and his co-conspirators accessed confidential tax records and data on the systems of Logica, an IT company working with Sweden’s tax authorities.

Gottfrid and his alleged accomplices will now go on trial starting May 20 but in the meantime additional information has been emerging via Niklas Femerstrand, a researcher, hacker, political activist and friend of Gottfrid.

Late last month, Femerstrand published translated transcripts of Gottfrid’s interrogation over several days between September 2012 and March 2013. Further information is now coming to light.

No comment

“This investigation, it has gone on since this spring and we have have quite a lot of material that we’ve been looking at. There are clear indications in this material that shows that you were involved. Do you know of this breach of Logica?” an interrogator asked Gottfrid last year.

“No comments!” responded Gottfrid. The interview was terminated after Gottfrid refused to admit knowing individuals referred to as ‘MG’ and ‘KS’ and answered “no comment” to pretty much everything. A follow up interview in which the Pirate Bay founder was asked if he knew “CS” was ended after achieving the same result.

An interview in March 2013 found Gottfrid marginally more compliant. In amongst an overwhelming number of “no comments” he admitted working as a freelance consultant and running an outsourcing company during his time in Cambodia.

Gottfrid also admitted to owning two computers, a desktop and a Macbook, that were found in his Cambodia apartment. He said the computers were used as servers, not by him personally, and were accessed via the Internet by individuals he admitted knowing and meeting.

“These people then, who have accessed [the servers]. Do you want to say something about them?” the interrogator asked.

Gottfrid responded “No…[..] because I fear for my own life.”

TrueCrypt container, chat logs and aliases

Later discussion turned to a 16GB TrueCrypt container found on one of the computers which appears to be a reference to material downloaded by the alleged hackers from Logica’s systems. Also present were log files listing the computer’s connections to Logica.

“In your computer, there are a number of different log files, the connections you have done to Logica… or that’s in your computer against Logica systems, what were these log files from?” the interrogator asked.

“Probably from those who used the computer. Either locally or, more likely remotely,” Gottfrid responded.

What followed was a discussion about various characters. According to earlier statements made by the prosecutor, some of those arrested in the case have Pirate Bay connections.

It appears that the previously arrested ‘MG’ was found in possession of chat logs with various nicknames listed. Gottfrid admitted to using “Anakata” and prosecutors suggested that he also used “tLt”. Gottfrid wouldn’t be drawn, but admitted that “Anakata” is a well known name.

“For example diROX asks TiAMO [Pirate Bay co-founder] where is Anakata? So he responds Cambodia, that’s correct isn’t it?” the interrogator questions.

What follows are lengthy logs read out by the prosecutor where “diROX” and “tLt” discuss cracking databases and gaining access to information.

“I also have complete dumps of amongst others the bailiff registry, only that is 12 Gb haha, got hold of the table of contents, it’s a little easier to find fun things then,” the interrogator read out, quoting “tLt”.

“I… just want to comment that bailiff records are public documents,” Gottfrid responded.

In November “MG” was interrogated again but refused to have a lawyer present. After being shown chatlogs he told his interrogators that “tLt” was Gottfrid Svartholm.

Cellphone data, Ubuntu One and the Hells Angels

Evidence also gathered from MG included forensics on his cellphone which revealed tools for cracking WiFi networks. Text documents within them contained the exact same login credentials used to access Logica’s servers. The same data was found on his Ubuntu One cloud storage account. MG later went on to admit that he had used the name “diROX” online.

MG denied that he’d downloaded any data through the tax intrusions but admitted carrying out queries on his friends. The interrogator asked ‘MG’ if those friends are members of the “Hells Angels” – MG said that was possible.

What followed next was an exchange where MG implied he was scared for his safety so couldn’t say anything more. His interrogators suggested things were still going to look bad for him with his ‘friends’ whether he cooperated or not. MG’s lawyer stepped in and put an end to the approach.

Lawyer’s account used as hacking springboard

It’s also been revealed that the alleged hackers gained access to systems via an account belonging to a movie industry lawyer. Monique Wadsted of the MAQS lawfirm was used extensively by the entertainment industries in the original Pirate Bay trial. For those who’ve seen the movie TPB AFK, she is the lady for whom Peter Sunde held open the door.

Wadsted had an account on a system called Infotorg, a provider of online information about private individuals, companies, properties and vehicles. Wadsted’s account was allegedly modified by the attackers to become a super-user account which enabled the download of large amounts of data. Traffic to that account was traced to IP addresses belonging to ISPs in Cambodia and Sweden.

Also of interest to those who followed the original Pirate Bay trial is the type of data that was accessed during the hacks. Searches were carried out on a wide range of individuals from an actor to a representative of a space project, but they were also conducted on Gottfrid himself, controversial ISP PRQ and various police cars. Interestingly a search was also conducted on Jim Keyzer, an IT forensics police officer who later transferred to Warner Bros., a plaintiff in the trial.

What is clear from even the small amount of information revealed so far (thanks again to Niklas Femerstrand) is that this is an incredibly complicated case that any court or jury will do well to keep up with. Whether it will stride confidently to its conclusion or collapse under its own complexity remains to be seen. We will know more later in May.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.