U.S. Extradited Russian Accused of Money-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 Division mentioned.

Denis Dubnikov,

a 29-year-old Russian, was arraigned in federal court docket 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 hide the supply of the funds.

After getting into his plea, Mr. Dubnikov was launched from custody underneath a number of situations, together with monitoring of his laptop exercise, in line with court docket paperwork.

A minimum of twelve extra people are dealing with fees within the case, in line with a court docket indictment unsealed Wednesday. Their names have 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 Avenue Journal beforehand reported. He was expelled from Mexico and placed on a airplane to Amsterdam, the place Dutch police arrested him on Nov. 2 on a U.S. cost of conspiracy to commit money-laundering, in line with his lawyer

Arkady Bukh.

He meant 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 at the least $70 million in ransom proceeds.

Recognized in 2018, Ryuk is a sort of ransomware that encrypts recordsdata 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 line with court docket paperwork.

Extra From Danger & Compliance

Ryuk has been used to focus on hundreds of victims worldwide, and U.S. authorities have recognized it as an growing risk notably to hospitals and healthcare suppliers within the U.S.

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

David Angeli,

an lawyer at Angeli Regulation Group LLC in Portland, Ore., who’s representing Mr. Dubnikov, declined to remark.

The extradition comes as ransomware continues to be one of many high cybersecurity dangers dealing with the Biden administration. Final yr alone, ransomware assaults stopped the supply 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 laptop programs throughout a pandemic.

Write to Mengqi Solar at mengqi.solar@wsj.com

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