DOJ Extradites Suspected Crypto Money Launderer

Key Takeaways

  • The Division of Justice’s Workplace of Worldwide Affairs has extradited a 29-year-old Russian man from the Netherlands on suspicion of laundering stolen digital property in reference to the Ryuk ransomware bug.
  • Denis Mihaqloviv Dubnikov faces as much as 20 years in jail if discovered responsible.
  • The U.S. govermment has been stepping up its oversight of the crypto area in latest months in a bid to clamp down on felony exercise.

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The Division of Justice mentioned that Dubnikov faces as much as 20 years in jail if discovered responsible.  

Justice Division Extradites Alleged Launderer 

The US authorities is taking large steps to clamp down on felony exercise within the cryptocurrency area. 

The Division of Justice posted another crypto-related update Wednesday confirming it had extradited an alleged cryptocurrency launderer from the Netherlands. 

A 29-year-old Russian man named Denis Mihaqloviv Dubnikov was summoned to a federal court docket in Portland, Oregon Wednesday on allegations of laundering ransom funds in reference to the Ryuk ransomware assaults. In accordance with the press launch, he might be jailed for as much as 20 years if convicted. 

After receiving ransom funds, Ryuk actors, Dubnikov and his co-conspirators, and others concerned within the scheme, allegedly engaged in numerous monetary transactions, together with worldwide monetary transactions, to hide the character, supply, location, possession, and management of the ransom proceeds,” the discharge famous. It added that Dubnikov was allegedly chargeable for laundering $400,000 in ransomware funds in 2019. 

Ryuk is a ransomware software program bug that emerged in 2018 and has since focused hundreds of victims worldwide. Ryuk sometimes encrypts information on contaminated gadgets and orders targets to pay a ransom, usually in Bitcoin, to decrypt the information. The Justice Division estimates that it’s chargeable for stealing greater than $70 million since its launching. 

Ryuk was initially suspected to be the product of North Korean state-sponsored cybercriminals however has extra lately been attributed to Russian crime syndicates. It preceded Conti, one other Russian ransomware bug that noticed its creators launder billions of {dollars} value of stolen crypto by way of blockchains like Ethereum. 

Dubnikov’s case comes because the U.S. authorities takes an aggressive strategy to clamp down on felony exercise within the digital property area. The Treasury Division’s Workplace of Overseas Belongings Management sanctioned Twister Money final week, citing its recognition amongst North Korea’s Lazarus Group and different criminals. The Ethereum mixer joins a blacklist that additionally consists of Blender, although its ban was notable in that OFAC sanctioned the good contract code itself quite than only a checklist of related addresses. 

The Justice Division’s Workplace of Worldwide Affairs led Dubnikov’s extradition, and its newly-established Ransomware and Digital Extortion Activity Pressure can also be engaged on the case, together with the FBI. 

Dunikov’s five-day trial is slated to begin on October 4. 

Disclosure: On the time of writing, the writer of this piece owned ETH and several other different cryptocurrencies. 

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