Denis Dubnikov, a founder of two over-the-counter (OTC) trading desks in Russia tied to ransomware attacks, was sentenced to no jail time, fine of $10,000 and forfeiture of $2,000 last week after a guilty plea, court documents show.
Dubnikov is a founder of the Coyote Crypto and Eggchange OTC services in Russia. He was arrested in 2021 in Netherlands and extradited to the U.S. in 2022 for helping ransomware hackers cash out crypto. According to the U.S. Department of Justice, Dubnikov helped the notorious Ryuk ransomware group launder more than $400,000 in ransom proceeds.
According to an indictment, Dubnikov was among the brokers who helped Ryuk launder the ransomware payouts by splitting payments into multiple smaller amounts, transferring them between self-hosted wallets and then exchanging bitcoin (BTC) for tether (USDT), other cryptocurrencies and fiat, especially the Chinese yuan.
If convicted, Dubnikov would have spent up to 20 years in prison. But in February he pleaded guilty to “conspiracy to commit money laundering,” and on April, 11, Dubnikov was sentenced for imprisonment of the time served, meaning he will be released on parole. Dubnikov was also ordered to pay a $10,000 penalty and forfeit $2,000, according to the court case documents.
CORRECTION (Apr. 21, 2023, 21:43 UTC): The initial version of this article did not mention the $10,000 fine Dubnikov had been sentenced to pay.
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