The U.S. Department of Justice (DOJ) announced a significant breakthrough in combating cybercrime with the collapse of a large ransomware ring. This success stems from investigators’ ability to trace 1,610 Bitcoin ($15 million at the time of payment) in ransom payments, which has been instrumental in identifying and charging individuals globally involved in these illicit activities. This investigation highlights the increasing effectiveness of law enforcement in following cryptocurrency trails to dismantle sophisticated cybercriminal networks.
One major development in this ongoing effort is the extradition of Karen Serobovich Vardanyan, a 33-year-old Armenian national, living in Ukraine.
Vardanyan was subsequently charged in the United States on July 16 for his alleged involvement in a widespread cyber extortion campaign utilizing Ryuk ransomware. His indictment marks a critical step in bringing to justice those responsible for crippling cyberattacks on various American organizations.
Vardanyan and his co-conspirators are accused of breaching company networks between March 2019 and September 2020. Their modus operandi involved encrypting critical data and then demanding Bitcoin ransom payments for decryption keys. The Ryuk ransomware was particularly destructive, compromising hundreds of devices across diverse sectors, including essential public services, healthcare facilities, and critical infrastructure, causing significant disruption and financial losses.
The extradition of Vardanyan on June 18 was the result of close collaboration between the Justice Department’s Office of International Affairs and Ukrainian authorities.
Following his extradition, Vardanyan pleaded not guilty during his initial court appearance in Oregon and is currently awaiting trial, which is set to commence on August 26. He faces serious charges, including conspiracy, fraud in connection with computers, and extortion involving computer systems.
If convicted, Vardanyan could face a maximum sentence of five years in federal prison, three years of supervised release, and a $250,000 fine for each count. While this arrest represents a major victory, the FBI continues its pursuit of three additional defendants connected to the ring; one is awaiting extradition from France, and the other two remain fugitives in Ukraine, indicating that the investigation is still active.
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