The Netherlands extradited a Russian national accused of laundering ransomware payments of cryptocurrency for cybercriminals who targeted hospitals. This man is alleged to have been involved in this criminal activity for three years, before his arrest last November in Amsterdam.
An Alleged Russian Money Launderer is Transferred to U.S. Dutch Authorities Take Over Russian Money Launderer
Denis Dubnikov, a 29-year-old Russian citizen, has been extradited this week from the Netherlands to the United States, where he is to face charges of money laundering in the District of Oregon, the U.S. Attorney’s Office in Portland and the U.S. Department of Justice (DOJ) announced.
Dubnikov appeared in federal court for the first time on Wednesday. A five-day jury trial is scheduled to start on October 4. He was charged by a Portland federal grand jury for his involvement in an international conspiracy to laundering crypto money.
The indictment states that the Russian conspirator and others intentionally and knowingly laundered ransomware proceeds on people and organisations in the United States, and other countries between August 2018 and August 2021.
The ransom payment was made from Ryuk victims. Ryuk was identified for the first time four years ago. This type of malware encrypts files, and attempts to erase system backups. The Ryuk ransomware has been tied to a Russian ransomware network. The Covid-19 virus has struck hospitals and other healthcare professionals in America.
The DOJ stated in a statement that Dubnikov had allegedly laundered over $400,000 in Ryuk ransom proceeds during July 2019. The conspiracy involved at least $70 millions in total. The maximum sentence for the Russian could be 20 years in prison if he is convicted.
Denis Dubnikov, a Russian national, was taken into custody in Amsterdam on November 1, 2021. Speaking to Russian media at the time, his lawyer Arkady Bukh alleged that he was “practically kidnapped” by U.S. law enforcement in Mexico before being transferred to Europe.
Co-founder of coin trading platforms Coyote Crypto & Eggchange, he was initially held in Mexico City’s airport. He had just arrived from vacation and was then taken on to Holland where he was detained by Dutch authorities.
Dubnikov’s extradition follows a similar development in the case of Alexander Vinnik, the alleged operator of the infamous cryptocurrency exchange BTC-e. Vinnik was apprehended in the summer of 2017 in the Greek city of Thessaloniki where he arrived on a summer holiday with his family. According to the U.S., he was accused of laundering more than $4 billion using the defunct crypto trading site.
Russian IT Specialist Vinnik was initially handed over to French authorities, who sentenced him for five years to money laundering. Vinnik was released from France and returned to Greece. He was then extradited to America. The hasty transfer angered his lawyers who think 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.”
What do you think of other Russians who could be implicated in criminal crypto-related activity? We’d love to hear from you in the comments below.
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