Russian Crypto Money Launderer Pleads Guilty in US, Faces Up to 20 Years

A Russian national accused of handling cryptocurrency funds from ransomware attacks has plead guilty to money laundering in the United States. The man was extradited from the Netherlands in mid-August last year and is expected to be sentenced in April.

Russian Crypto Money Launderer Pleads Guilty In US Court, Could Serve Up To Twenty Years

An alleged money launderer from Russia has plead guilty to one count of conspiring to launder money in the US. Denis Dubnikov was taken into custody on October 30th, 2020 in Amsterdam and handed over by Dutch authorities on August 16th, 2021. He appeared in court the following day.

The suspect and his accomplices were laundering the proceeds of Ryuk ransomware attacks against individuals and organizations in the US and other countries between August 2018 and August 2021, according to court documents. The case was brought forward by the United States District Attorney’s Office in Oregon.

“Specifically, in July 2019, a US-based company paid Ryuk a ransom of 250 bitcoins. On or about July 11, 2019, in Moscow, Russia, Dubnikov accepted 35 bitcoins from a co-conspirator in exchange for approximately $400,000,” a statement released Tuesday detailed.

The ransom paid by the company was in the form of cryptocurrency. Dubnikov converted the bitcoin into tether, and sent it to another person who exchanged it for Chinese yuan. Dubnikov was compensated for his role by his co-conspirators, who laundered additional bitcoins.

Denis Dubnikov is expected to be sentenced on April 11th, 2023. Further information from the US courts is that conspiracy to commit money laundering can result in up to 20 years imprisonment, three years of supervised release and a $500,000 fine.

Ryuk is a type of malware that encrypts data on computers in the target group. In 2018, ransomware was first seen being used against victims in many industries around the world, including hospitals and healthcare providers in the United States. According to the latest report from blockchain forensics agency Chainalysis, the revenue from ransomware attacks has declined.

Can Dubnikov’s guilty plea result in a further decrease of ransomware funds? Share your thoughts in the comments section below.