A Russian national accused of processing cryptocurrency payments from ransomware attacks has pleaded guilty to money laundering in the United States. The man who was extradited from the Netherlands in mid-August last year will be sentenced in April.
Russian Crypto Launderer Pleads Guilty in US Court, Faces Up to 20 Years in Prison
An alleged money launderer from Russia has pleaded guilty to one count of conspiring to commit money laundering in the United States. Denis Dubnikov, now 30, was arrested on November 2, 2021 in Amsterdam, handed over by Dutch authorities on August 16, 2022, and appeared for the first time in federal court the next day.
The Russian and his accomplices have been laundering the proceeds of Ryuk ransomware attacks against individuals and organizations in the US and other countries between at least August 2018 and August 2021, according to court documents, cited by the Prosecutor’s Office. of USA, District of Oregon. They made various financial transactions to hide the source and ownership of the digital money.
“Specifically, in July 2019, a US-based company paid Ryuk a ransom of 250 bitcoins following a ransomware attack. On or about July 11, 2019, in Moscow, Russia, Dubnikov accepted 35 bitcoins from a co-conspirator in exchange for approximately $400,000,” an announcement posted Tuesday detailed.
The cryptocurrency came directly from the ransom paid by the company. Dubnikov converted the bitcoin into tether and sent it to someone else, who eventually exchanged it for Chinese yuan. Dubnikov’s co-conspirators laundered more bitcoins and compensated him for his role.
Denis Dubnikov will be sentenced on April 11, 2023. US judicial authorities further noted that conspiracy to commit money laundering is punishable by up to 20 years in federal prison, three years of supervised release and a $500,000 fine.
Ryuk is a type of software that encrypts files on the computers of the target organization. First identified in 2018, the ransomware has been used against victims around the world and in various industries, including hospitals and healthcare providers in the United States. According to a recent report by blockchain forensics firm Chainalysis, revenue from ransomware attacks has declined.
Do you think cases like Dubnikov’s will result in a further drop in ransomware payments? Share your thoughts on the subject in the comments section below.
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