Ukrainian Hacker “Rabotnik” Imprisoned for 13 Years 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 citizen known as “Rabotnik,” has received a prison sentence of 13 years and seven months for his involvement in ransomware attacks.
In accordance with a Department of Justice announcement on Wednesday, Vasinskyi carried out more than 2,500 ransomware attacks and demanded over $700 million in ransom payments.
This sentencing follows a 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.
In response to the incident, Russian authorities, at the request of the United States, conducted a raid in March 2022, resulting in 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 acted as an associate of groups that utilized the Sodinokibi or REvil ransomware variant. These groups used cryptocurrency payments and mixing services to conceal their illegally 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.
“Through this sentencing, the Justice Department demonstrates its commitment to collaborating with international partners and utilizing all available resources to identify cybercriminals, seize their illicit profits, and hold them accountable for their offenses,” stated Attorney General Merrick B. Garland.
In 2023, the Department of Justice confiscated 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 Holds Over $5 Billion in Bitcoin
The U.S. government has become one of the largest holders of Bitcoin, acquiring around 200,000 coins (worth roughly $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 aroused curiosity among crypto traders.
Any decision to sell these assets could potentially impact prices and have far-reaching effects on 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 consequence of the lengthy 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 dictated by the timing of the legal process.
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