- A Russian ransomware money launderer has been fined just $2,000 for his role in facilitating Ruk ransomware funds
- Denis Dubnikov ran two OTC desks where the illegally obtained bitcoin was exchanged
- Dubnikov was arrested in 2021 and pleaded guilty in February this year
A broker who sold funds obtained through the Ryuk ransomware has escaped without a prison sentence and just a $2,000 for his role in the operation. Denis Dubnikov founded the Coyote Crypto and Eggchange OTC services in Russia and was arrested in the Netherlands in 2021 before being extradited to the United States in 2022. The US Department of Justice (DoJ) alleged that Dubnikov assisted the Ryuk ransomware group in laundering over $400,000 in ransom money, including attacks on public and private entities.
Ryuk Hit Public and Private Companies
The DoJ claims that Dubnikov and his partners were involved in laundering the profits from the Ryuk ransomware attacks on people and entities in the United States and other countries between August 2018 and August 2021. These included attacks on Virtual Care Provider Inc. and Travelex.
After obtaining ransom payments, the Ryuk group, including Dubnikov and his associates, engaged in various financial activities to conceal the origin, location, ownership, and control of the ransom proceeds.
Dubnikov Handled Stolen Bitcoin
In July 2019, an unnamed U.S. company paid a 250 bitcoin Ryuk ransom after being targeted by a ransomware attack, and on or about July 11 that year Dubnikov accepted 35 Bitcoin from a co-conspirator in exchange for approximately $400,000. The bitcoin Dubnikov received was directly linked to the ransom paid by the U.S. company. Dubnikov exchanged the bitcoin for USDT and sent it to another co-conspirator, who ultimately converted it into Chinese Renminbi.
Dubnikov was financially compensated for his involvement in the operation, while Dubnikov’s co-conspirators laundered more Bitcoin that was sourced from the original ransom payment. Dubnikov was a arrested in the Netherlands in November 2021 and pleaded guilty to U.S. charges in February this year.
