US DOJ seizes $22 million in Bitcoin from man involved in ransomware attacks

The US Department of Justice confiscated 719 bitcoins from the 35-year-old Canadian – Sebastien Vachon-Desjardins – for participating in the NetWalker ransomware attacks.

At the time of the seizure, the amount of cryptocurrency amounted to almost 22 million dollars.

Prison time for criminals

According to a recent announcement, Vachon-Desjardins was involved in a sophisticated type of ransomware known as NetWalker. The malware targeted victims worldwide, including companies, emergency services, colleges and universities. It is worth noting that the main focus of the attacks was on the healthcare sector during the COVID-19 pandemic.

Assistant Attorney General Kenneth A. Polite, Jr. at the Justice Department’s criminal division said the perpetrator targeted mainly wealthy people and high-net-worth companies and profited from “the chaos caused by encrypting and stealing victims’ data.”

As a result of the investigation, the US DOJ seized $742,840 in Canadian dollars and 719 BTC. At the time of the confiscation, the cryptocurrency amounted to $21.8 million, while today’s value is $14.4 million.

In addition, US authorities secured the man’s extradition to the US and sentenced him to spend the next 20 years in federal prison. Kenneth A. Polite, Jr. believes the harsh punishment can serve as an example for those who believe they can exploit victims in this way.

Commenting on the case was David Walker – Special Agent in Charge of the FBI Tampa Field Office:

“This sentencing serves as a reminder to the American public that the FBI is committed to combating cyber threats with its world-class capabilities and enduring partnerships with law enforcement. Our cyber task forces are working vigorously to expose and bring to justice the cyber adversaries who target American citizens.”

Other recent cases

A month ago, Florida resident Joshua David Nicholas admitted that he and other members of the cryptocurrency platform EmpiresX defrauded investors of digital assets worth $100 million.

The criminals lured users into making their device use artificial and human intelligence to maximize profitability. Instead, EmpiresX operated as a typical Ponzi scheme and was not registered with the US financial watchdog.

Nicholas pleaded guilty to one count of conspiracy to commit securities fraud, which resulted in a maximum sentence of five years in federal prison.

In August, US law enforcement agents charged three residents of Miami, Florida – Da Corte, Gonzalez and Meza – with stealing over $4 million from banks and a cryptocurrency exchange.

The men bought cryptocurrency from the platform using fake identities. Later, they complained to financial institutions that these transactions were carried out without the necessary authorization, and asked for a refund.

After a successful investigation, Homeland Security Investigations (HSI) identified the fraud and brought violators to justice. They risk a sentence of 30 years behind bars.