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Russian extradited from Netherlands to face ransomware charges

18.08.2022

A 29-year-old Russian accused of laundering ransom payments on behalf of cybergangs targeting hospitals and health-care providers has been extradited from the Netherlands to the US to face charges.

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According to a statement from the US Attorney's Office in Portland, Oregon, Denis Mihaqlovic Dubnikov is accused of being involved in a variety of financial transactions to conceal cryptocurrency extorted from the victims of Ryuk ransomware attacks from August 2018 to August 2021.

Ryuk, a type of ransomware that has been used to target thousands of individuals and businesses around the world, gained attention in October 2020, after officials warned it was being used to target hospitals and health-care providers while the country was in the depths of the Covid-19 epidemic.

At the time, Charles Carmakal, chief technology officer at Mandiant Inc., described the use of Ryuk ransomware to attack hospitals as the most significant cybersecurity threat we've seen in the US. Carmakal said that the Eastern European gang responsible for infecting hospitals with malware was the most brazen, heartless, and disruptive threat actors he had ever seen. The UNC 1878 gang targeted hospitals to extort money from them or force them to shut down their services, officials said.

The US Attorney's Office said Dubnikov was accused of laundering more than $400,000 in Ryuk ransom proceeds. The funds were part of a larger scheme among his co-conspirators to launder $70 million, according to prosecutors.

On November 2, 2021, Dubnikov was arrested in Amsterdam. He pleaded not guilty on Wednesday in a court in Oregon before US Magistrate Judge Jolie A. Russo.

A five-day jury trial is scheduled to begin on October 4, 2022, according to prosecutors.

Dubnikov is facing a maximum sentence of 20 years in federal prison, three years supervised release and a fine of $500,000.

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