The US Department of Justice has reported that Russian citizen Denis Dubnikov, suspected of laundering money through cryptocurrencies, has been extradited from the Netherlands to the United States.
Dubnikov was detained in Amsterdam on November 1 on suspicion of having a criminal connection with the Coyotes group, which owns the EggChange exchanger. On October 4, Dubnikov will appear in court in Portland. If convicted, the 29-year-old Russian faces up to 20 years in prison.
Citing court documents, the Justice Department claims that Dubnikov laundered more than $400,000 in July 2019, including through cryptocurrencies. In total, the group of scammers laundered at least $70 million in proceeds from the use of Ryuk during their criminal activities.
“After receiving the ransom, Ryuk operators used various schemes, including cross-border financial transactions with cryptocurrencies, to hide the nature, source and location of their proceeds from fraudulent transactions,” the statement said.
Dubnikov’s extradition was handled by the Department of Justice’s International Affairs Office, coordinating efforts with the Department’s Task Force on Combating Ransomware and Digital Ransomware. The FBI is investigating the case in Portland.
Ryuk ransomware was first detected in August 2018. When run on a computer or network, it encrypted files and deleted system backups. Ryuk attacked drives contained in or physically connected to a computer, including those accessible through a network connection.
Hackers have used Ryuk around the world in a wide variety of sectors. In October 2020, law enforcement officials acknowledged that Ryuk is a major threat to hospitals and healthcare providers in the United States.