Russian Crypto Ransom Launderer Sentenced to Probation and Fine
• Denis Dubnikov, a Russian crypto entrepreneur, has been sentenced to probation and fined in the U.S. after pleading guilty to money laundering from ransomware attacks.
• Dubnikov was arrested in Amsterdam and extradited to the U.S., where he was accused of laundering proceeds from Ryuk ransomware attacks between August 2018 and August 2021.
• The court ordered him to forfeit $2,000 and pay $10,100 in criminal monetary penalties, as well as comply with supervision requirements such as regular reporting to the police and drug tests.
Russian Crypto Entrepreneur Sentenced for Money Laundering
A Russian crypto entrepreneur has been sentenced to probation and fined by a US court after pleading guilty to money laundering related to ransomware attacks.
Arrest of Denis Dubnikov
Denis Dubnikov, founder of two coin trading platforms – Coyote Crypto and Eggchange – was arrested in Amsterdam last year and extradited to the US on charges relating to money laundering of proceeds from Ryuk ransomware attacks between August 2018 and August 2021.
The Oregon court sentenced the 30-year-old crypto businessman to three years‘ probation plus forfeiture of proceeds amounting to $2000 representing a portion of what he made as a result of his criminal activity, plus payment of $10,100 in criminal monetary penalties. In addition, he is required to comply with supervision requirements including regular reporting to the police, taking drug tests, and providing DNA samples at the request of law enforcement authorities.
Ryuk is a type of software that encrypts files on targeted organizations‘ computers worldwide including hospitals and healthcare providers in the United States; one company paid 250 BTC (approx. $3.1 million) ransom following an attack in July 2019 which resulted in Dubnikov exchanging 35 BTC for approximately $400k cash without knowledge that it was ransomware proceeds but deliberately avoiding learning the truth.
Dubnikov’s sentence takes into account time spent detained pending extradition; hopefully this serves as an example that cyber criminals will not get away with their crimes regardless if they are committed across international borders or not!