Berlin is facing a blackmail threat following a cyberattack that disrupted several city administrations earlier this month, with hackers allegedly demanding a ransom in cryptocurrency in exchange for not publishing stolen data. Outgoing Berlin Mayor Kai Wegner described the incident as a serious crime and maintained that the city would not give in to the demands.

According to German weekly Der Spiegel, the attackers are demanding 30 bitcoins, reportedly worth around two million euros or $2.5 million. The publication, citing a security source, reported that the hacker group Rhysida is believed to be behind the attack. The group has previously targeted major institutions and gained attention after claiming responsibility for a ransomware attack against the British Library in 2023.

The cyberattack, which took place on August 14, forced several Berlin city administrations to disconnect from their network for about a week. Departments dealing with housing and environmental matters were among those affected. The disruption also prevented applications for housing benefits and related payments from being processed for several days, causing difficulties for residents relying on municipal services.

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Authorities initially indicated that no sensitive information had been taken during the attack. However, officials acknowledged on Wednesday that personal data may have been compromised. Der Spiegel reported that the alleged attackers have threatened to release the stolen information unless the ransom is paid within a week. Officials are continuing checks to determine exactly what information may have been accessed or stolen.

Berlin's security authorities are working to identify and apprehend those responsible, Wegner said, while officials continue investigating the extent of the data breach. The case has renewed concerns over the risks posed by ransomware attacks against public institutions, particularly when disruptions affect essential government services and potentially expose residents' personal information.

Rhysida's previous attack on the British Library provides an indication of the potential consequences of refusing such demands. The library declined to pay the ransom, after which the group reportedly published around 500,000 files containing personal information belonging to visitors, subscribers and staff on the dark web. Despite the disruption in Berlin, Deputy Mayor Iris Spranger confirmed that the cyberattack would not affect elections scheduled for September 20, stating that the voting process remains secure.

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