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'Not guilty' plea for British cybersecurity researcher accused of creating malicious software

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MILWAUKEE (AP/WTMJ) -- A British cybersecurity researcher credited with helping curb a recent worldwide ransomware attack pleaded not guilty Monday to federal charges accusing him of creating malicious software to steal banking information three years ago.

Marcus Hutchins entered the Wisconsin federal court room with a smile. He entered his plea, where prosecutors charged him and an unnamed co-defendant with conspiring to commit computer fraud in the state and elsewhere. After the short appearance, he hugged family.

Authorities arrested the 23-year-old man on August 2 at McCarran International Airport in Las Vegas, where he was going to board a flight to his home in England. He had been in Las Vegas for a cybersecurity convention.

Hutchins' attorney, Marcia Hoffman, said after Monday's brief hearing that Hutchins will fight the charges and that "when the evidence comes to light, we are confident he will be fully vindicated."

"Marcus Hutchins is a brilliant young man and a hero," Hoffman said.

Hutchins left afterward in a white SUV with tinted windows. He was asked if he has a message to his supporters as he was leaving federal court with smiles for the camera. He replied "Thank you."

He is free on $30,000 bail, with conditions. His bond has been modified so that he can stay in Los Angeles near his attorney and travel anywhere in the U.S., but he cannot leave the country. He was also granted access to use a computer for work and in general, a change from an earlier judge's order barring him from using any device with access to the internet.

Hutchins' current work wasn't detailed at Monday's hearing. Hutchins' attorney Brian Klein said he was pleased the computer restrictions had been lifted, "...allowing [Hutchins] to return to his important work."

The next hearing in the case was set for October 17, with an October 23 trial date, though the latter was expected to change due to the case's complexity.

The legal troubles Hutchins faces are a dramatic turnaround from the status of cybercrime-fighting hero he enjoyed four months ago when he found a "kill switch" to slow the outbreak of the WannaCry virus. It crippled computers worldwide, encrypting files and making them inaccessible unless people paid a ransom.

Prosecutors allege that before Hutchins won acclaim, he created and distributed a malicious software called Kronos to steal banking passwords from unsuspecting computer users. In addition to computer fraud, the indictment lists five other charges, including attempting to intercept electronic communications and trying to access a computer without authorization.

The indictment says the crimes happened between July 2014 and July 2015. Prosecutors have not said why the case was filed in Wisconsin. The name of Hutchins' co-defendant is redacted from the indictment.

Hutchins faces decades in prison if convicted on all the charges.