US extradites suspected crypto money launderer from Netherlands

The United States has extradited an alleged cryptocurrency money launderer from the Netherlands, according to a Justice Department press release.

Denis Mihaqloviv Dubnikov, 29, a Russian citizen, appeared in federal court in Portland, Oregon, on Wednesday and a five-day jury trial is scheduled to begin October 4. If convicted, Dubnikov faces a maximum sentence of 20 years in prison, according to the DOJ statement.

The DOJ cites court documents that allege that Dubnikov and his accomplices laundered ransoms extorted from victims of the Ryuk ransomware attacks.

“After receiving payment of a ransom, actors Ryuk, Dubnikov and his co-conspirators, as well as others involved in the scheme, allegedly engaged in various financial transactions, including international financial transactions, to conceal the nature, source, location, ownership, and control of the money the ransom is paid,” the DOJ statement said.

Ryuk is ransomware that has targeted thousands of victims worldwide.

Dubnikov allegedly laundered more than $400,000 from the Ryuk ransom proceeds. “Those involved in the conspiracy laundered at least $70 million in ransoms,” the DOJ alleges.

Several agencies are working on the file. The Justice Department's Office of International Affairs handled Dubnikov's extradition, coordinating efforts with the department's Ransomware and Digital Extortion Task Force created to combat digital extortion attacks. The FBI Portland Field Office is investigating the case.

Learn more: Ransomware gang extorted 725 BTC in single attack, on-chain detectives say