Ryuk Ransomware Gang’s Crypto Broker Gets Slap On The Wrist For Guilty Plea

Key Points:

• Founder of OTC trading desks in Russia tied to ransomware attacks sentenced to no jail time and forfeiture of $2,000 after a guilty plea.
• Denis Dubnikov helped the notorious Ryuk ransomware group launder more than $400,000 in ransom proceeds.
• Dubnikov plead guilty to conspiracy to commit money laundering, and was sentenced to imprisonment of the time served, meaning he will be released on parole.

Denis Dubnikov, a founder of two OTC trading desks in Russia, was sentenced to no jail time and forfeiture of $2,000 last week after a guilty plea for helping ransomware hackers cash out crypto.

Dubnikov was arrested in 2021 in the Netherlands and extradited to the United States in 2022.

According to the U.S. Department of Justice, Dubnikov helped the notorious Ryuk ransomware group launder more than $400,000 in ransom proceeds by splitting payments into multiple smaller amounts, transferring them between self-hosted wallets, and exchanging bitcoin for tether, other cryptocurrencies, and fiat, especially the Chinese yuan. Dubnikov was among the brokers indicted for involvement in the money laundering scheme.

If convicted, Dubnikov would have spent up to 20 years in prison. However, in February of 2023, he pleaded guilty to “conspiracy to commit money laundering.” On April 11, Dubnikov was sentenced to the time served, which means he will be released on parole. Dubnikov was also ordered to forfeit $2,000, according to the court case documents.

Dubnikov’s sentence has raised questions about the justice system’s effectiveness in dealing with individuals who facilitate ransomware attacks. Some argue that the punishment is not harsh enough, especially given the significant financial losses and damages caused by ransomware attacks. Others argue that Dubnikov’s cooperation with the authorities should be considered to address better the issue of ransomware attacks and money laundering in the cryptocurrency industry.

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