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Russians Accused of Laundering Cryptocurrency from Ransomware Attack Extradited to US – Bitcoin News
A Russian national suspected of laundering cryptocurrency ransom payments on behalf of cybercriminals targeting hospitals has been extradited to the United States by the Netherlands. The man is said to have been involved in the criminal activity for a period of three years before he was arrested in Amsterdam last November.
Alleged Russian money launderer handed over to US custody by Dutch authorities
Denis Dubnikov, a 29-year-old Russian national, was extradited from the Netherlands to the United States this week, where he will face money laundering charges in the District of Oregon, the U.S. Attorney’s Office in Portland, and the U.S. Department of State. of Justice (DOJ) announced.
Dubnikov made his first appearance in federal court Wednesday, and a five-day jury trial is scheduled to begin Oct. 4. In August, a federal grand jury in Portland indicted him for his role in an international money laundering conspiracy.
According to the indictment, the Russian and his accomplices knowingly and intentionally laundered the proceeds of ransom attacks on individuals and organizations, throughout the United States and in other countries, between at least August 2018 and August 2021.
The perpetrators specifically laundered ransom money collected from victims of Ryuk ransomware attacks. First identified four years ago, Ryuk is a type of software that encrypts files and attempts to delete system backups, which has been linked to a Russian ransomware group. Hospitals and healthcare personnel in the United States have become victims in the wake of the Covid-19 pandemic.
In July 2019, Dubnikov allegedly laundered more than $400,000 in Ryuk ransom money, the DOJ said in a statement. Those involved in the conspiracy laundered at least $70 million in total. If the Russian is convicted, he could receive a maximum sentence of 20 years in prison.
Denis Dubnikov was detained in Amsterdam on November 1, 2021. Speaking to Russian media, his lawyer Arkady Bukh alleged that he was “virtually kidnapped” by US law enforcement in Mexico before being transferred to Europe.
The co-founder of the coin trading platforms Coyote Crypto and Eggchange was first held at the airport in Mexico City, where he arrived on vacation, and then put on a flight to the Netherlands where he was arrested by the Dutch authorities.
Dubnikov’s extradition follows a similar development in the case of Alexander Vinnik, the alleged operator of the notorious BTC-e cryptocurrency exchange. Vinnik was arrested in the summer of 2017 in the Greek city of Thessaloniki, where he came on summer vacation with his family. He was arrested on a US warrant accusing him of laundering at least $4 billion through the now-defunct crypto trading platform.
The Russian IT specialist was first handed over to the French judiciary, which sentenced him to five years in prison for money laundering. After serving his term in France, Vinnik was returned to Greece and extradited to the United States. The hasty transfer angered his lawyers who believe he will become a “hostage” of the current geopolitical tensions surrounding the war in Ukraine. Meanwhile, Moscow accused Washington of conducting a “real hunt for Russian citizens.”
Do you expect other Russians, potentially involved in crypto-related illegal activities, to be extradited to the US? Tell us in the comments section below.
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