The US Federal Bureau of Investigation (FBI) collected 1,610 BTC worth 15 million USD from a cybercrime extortion network using Ryuk Ransomware.
A complex international investigation concluded with the US Department of Justice successfully prosecuting Karen Serobovich Vardanyan, a 33-year-old Armenian citizen, for participating in a large-scale cybercrime extortion network. This case marks an important step in the global fight against cybercrime, particularly in using blockchain technology to trace illegal funds.
According to the indictment released on July 16, Vardanyan and his accomplices conducted a systematic cyber attack campaign from March 2019 to September 2020. This criminal group infiltrated the network systems of multiple US companies, including a technology business in Oregon, then encrypted critical data and demanded ransom to restore access.
Notably, the FBI successfully traced 1,610 Bitcoin paid by victims, with a total value exceeding 15 million USD at the time of transaction. The ability to track Bitcoin transactions on the blockchain has become a powerful tool for law enforcement to identify and prosecute cybercriminals, refuting the notion that cryptocurrency provides complete anonymity.
Ryuk Ransomware causing serious damage to critical infrastructure
The Ryuk Ransomware used in this case targeted not only ordinary businesses but also sensitive sectors like public services, healthcare, and essential infrastructure. The criminal group's method demonstrated high sophistication, installing ransom demands directly into victims' computer systems and providing email addresses to establish communication channels.
Vardanyan's extradition from Ukraine to the US occurred on June 18, through close cooperation between the US Department of Justice's International Affairs Office and Ukrainian authorities. In his first hearing in Oregon, the defendant did not plead guilty and is currently in custody awaiting trial, expected to begin on August 26.
The charges Vardanyan faces include conspiracy, computer-related fraud, and extortion through computer systems. If convicted, the defendant could face a maximum federal prison sentence of 5 years, 3 years of supervised release, and fines up to 250,000 USD for each charge.
The case is not yet closed, with the FBI continuing to pursue three other suspects related to this criminal network. One is awaiting extradition in France, while two others remain at large in Ukraine.
