Ukrainian Cybercriminal “Rabotnik” Receives 13-Year Sentence for Orchestrating $700M Worth of Ransomware Attacks
Ruholamin Haqshanas
Last updated:
May 2, 2024 05:37 EDT
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2 min read
Yaroslav Vasinskyi, a Ukrainian individual famously known as “Rabotnik,” has been sentenced to 13 years and seven months in prison for his involvement in ransomware attacks.
As per an announcement by the Department of Justice on Wednesday, Vasinskyi carried out more than 2,500 ransomware attacks, demanding over $700 million in ransom payments.
This sentencing comes after the high-profile incident involving the hacking of Miami-based software provider Kaseya. The case revolves around the ransomware group REvil, which demanded an astonishing $70 million in Bitcoin as ransom.
Following the incident, Russian authorities conducted a raid in March 2022 at the request of the United States. This raid led to the dismantling of the REvil group.
Rabotnik Ordered to Pay $16M
Rabotnik, a 24-year-old cybercriminal, has been instructed to pay restitution totaling over $16 million.
He operated as an affiliate of groups using the Sodinokibi or REvil ransomware variant. These groups utilized cryptocurrency payments and mixing services to conceal their unlawfully obtained funds.
Previously, Yaroslav Vasinskyi was extradited from Poland to the United States and subsequently pleaded guilty to an 11-count indictment.
The charges against him included conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering.
Attorney General Merrick B. Garland stated, “As this sentencing shows, the Justice Department is collaborating with our international partners and utilizing all available tools to identify cybercriminals, seize their illicit profits, and hold them accountable for their crimes.”
In 2023, the Department of Justice seized nearly 40 Bitcoin, currently valued at approximately $2.3 million, along with $6.1 million in funds that could be traced back to ransom payments received by other individuals involved in the conspiracy.
US Government Possesses Over $5 Billion Worth of Bitcoin
The U.S. government has become one of the largest holders of Bitcoin, acquiring around 200,000 coins (worth approximately $5 billion) through seizures related to criminal activities.
These digital assets were confiscated from cybercriminals and darknet markets and are securely stored offline in encrypted hardware wallets controlled by various federal agencies, including the Justice Department and the Internal Revenue Service (IRS).
The fate of the U.S. government’s Bitcoin holdings has piqued the interest of cryptocurrency traders.
Any decision to sell these assets could potentially impact prices and send shockwaves throughout the trillion-dollar digital asset market.
However, the government’s approach is not driven by market speculation or timing.
Instead, the accumulation of BTC is a byproduct of the extensive legal process of confiscating and managing these assets.
Jarod Koopman, the executive director of the IRS’s cyber and forensics services section, informed the Wall Street Journal that the government does not actively trade or time the market.
Their actions are determined by the timing of the legal process.
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