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U.S. Extradited Russian Accused of Cash-Laundering Tied to Ryuk Ransomware Gang


A Russian nationwide who was extradited from the Netherlands to Portland, Ore., this week pleaded not responsible to fees of allegedly laundering cryptocurrency proceeds from ransomware assaults within the U.S. and overseas, the Justice Department mentioned.

Denis Dubnikov,

a 29-year-old Russian, was arraigned in federal courtroom for the District of Oregon on Wednesday. Prosecutors alleged that Mr. Dubnikov and his co-conspirators laundered bitcoin extracted from victims of Ryuk ransomware assaults by way of monetary transactions, in each crypto and fiat currencies, to conceal the supply of the funds.

After getting into his plea, Mr. Dubnikov was launched from custody beneath a number of circumstances, together with monitoring of his pc exercise, in accordance to courtroom paperwork.

At least twelve extra people are dealing with fees within the case, in accordance to a courtroom indictment unsealed Wednesday. Their names had been redacted within the indictment, and prosecutors didn’t establish Mr. Dubnikov’s alleged co-conspirators.

A Moscow entrepreneur, Mr. Dubnikov was detained whereas on trip in Mexico final November, The Wall Street Journal beforehand reported. He was expelled from Mexico and placed on a aircraft to Amsterdam, the place Dutch police arrested him on Nov. 2 on a U.S. cost of conspiracy to commit money-laundering, in accordance to his lawyer

Arkady Bukh.

He supposed to plead not responsible to a U.S. cost of conspiracy to commit money-laundering, his lawyer mentioned on the time.

The DOJ accused Mr. Dubnikov of receiving and laundering greater than $400,000 in Ryuk proceeds in 2019, and alleges these concerned within the conspiracy laundered not less than $70 million in ransom proceeds.

Identified in 2018, Ryuk is a kind of ransomware that encrypts information and makes an attempt to delete any system backups on a pc or community. The Ryuk actors directed victims to pay in bitcoin and offered them with a pockets tackle to make the ransom funds, in accordance to courtroom paperwork.

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Ryuk has been used to goal 1000’s of victims worldwide, and U.S. authorities have identified it as an growing risk particularly to hospitals and healthcare providers within the U.S.

Mr. Dubnikov is scheduled to face a jury trial beginning on Oct. 4. If convicted, he faces up to 20 years in jail.

David Angeli,

an legal professional at Angeli Law Group LLC in Portland, Ore., who’s representing Mr. Dubnikov, declined to remark.

The extradition comes as ransomware continues to be one of the top cybersecurity risks dealing with the Biden administration. Last yr alone, ransomware assaults stopped the delivery of gasoline and different gasoline by way of the Colonial Pipeline; threatened the nation’s meals provide by shutting down meatpacker


and put in danger sufferers’ lives by closing down hospital computer systems throughout a pandemic.

Ransomware assaults are growing in frequency, sufferer losses are skyrocketing, and hackers are shifting their targets. WSJ’s Dustin Volz explains why these assaults are on the rise and what the U.S. can do to combat them. Photo illustration: Laura Kammermann

Write to Mengqi Sun at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared within the August 19, 2022, print version as ‘U.S. Links Russian to Laundering.’

Source: www.wsj.com

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