Lawyer cites reason for detention of co-founder of Bitcoin-exchange group Coyote Crypto and EggChange

The 29-year-old co-founder of the group of bitcoin-exchanges Coyote Crypto and EggChange, Denis Dubnikov, is suspected of laundering money for Ryuk ransomware operators. CNN reported, according to Russian lawyer Arkady Bukh.

According to U.S. authorities, Dubnikov received more than $400,000 in cryptocurrency as payment from the cybercriminal group involved in extortion.

As stated by Bukh in an interview with TASS, the defense will insist that Dubnikov “knew nothing, did not know where the money came from, and acted in full compliance with Russian law.”

At the same time, the lawyer noted that the American side’s charges have not yet been fully brought.

“They have the right not to do this until he is brought to the United States,” the lawyer said.

Should Dubnikov be found guilty in the United States, he could face up to 20 years in prison.

Dubnikov was detained on 2 November in the Netherlands at the FBI’s request. The U.S. Department of Justice is seeking the extradition of the Russian.

Earlier, three well-placed sources confirmed Bloomberg’s information about an investigation into EggChange in the United States and Europe on money-laundering charges.

Since 2018, the creators of the Ryuk ransomware have attacked at least 235 hospitals and psychiatric facilities in the United States, demanding a ransom to restore files.

Only in 2020 did hackers receive about $150 million in cryptocurrency. More than $1 million of this sum the group moved through the Binance exchange.

In late September 2021, the U.S. Treasury added the cryptocurrency exchange Suex, with offices in Moscow and Saint Petersburg, which also processed transactions for Ryuk operators.

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