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Russian Charged with Laundering Crypto Ransomware Pleads Guilty in US – Bitcoin News
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, could face up to 20 years in prison
An alleged money launderer from Russia has pleaded guilty to one count of conspiracy 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 made his first appearance in federal court the following day.
The Russian and his accomplices laundered the proceeds of Ryuk ransomware attacks on individuals and organizations in the United States and other countries between at least August 2018 and August 2021, according to court documents cited by the U.S. Attorney’s Office, 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 250 bitcoin ransom 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,” said in an announcement published on Tuesday.
The cryptocurrency came directly from the ransom paid by the company. Dubnikov converted bitcoin to tether and sent it to another person, who eventually exchanged it for Chinese yuan. Dubnikov’s co-conspirators laundered more bitcoin and compensated him for his role.
Denis Dubnikov will be sentenced on April 11, 2023. The 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 fine of $500,000.
Ryuk is a type of software that encrypts files on the targeted organization’s computers. First identified in 2018, the ransomware has been used against victims worldwide and from various sectors, including hospitals and healthcare workers in the United States. According to a recent report from blockchain investigative firm Chainalysis, revenue from ransomware attacks has declined.
Do you think cases like Dubnikov’s will result in a further drop in ransom payments? Share your thoughts on the topic in the comments section below.
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