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Ukrainian Cybercriminal Sentenced to 13 Years for Ransomware Attacks
Yaroslav Vasinskyi, also known as “Rabotnik,” has been sentenced to 13 years and seven months in prison for his involvement in over 2,500 ransomware attacks, totaling more than $700 million in ransom payments.
High-Profile Ransomware Incident Involving Kaseya
The sentencing follows a significant ransomware incident targeting the Miami-based software provider Kaseya, where the REvil group demanded $70 million in Bitcoin as ransom.
Russian Authorities Dismantle REvil Group
As a result of the Kaseya hack, Russian authorities, under the request of the United States, conducted a raid in March 2022 that led to the dismantling of the REvil group.
Restitution Order and Affiliation with Ransomware Groups
Rabotnik, aged 24, has been ordered to pay over $16 million in restitution. He was affiliated with groups using the Sodinokibi or REvil ransomware variant, employing cryptocurrency payments and mixing services to conceal their illegally obtained funds.
US Government’s Bitcoin Holdings and Seizures
The U.S. government has become a major holder of Bitcoin, acquiring around 200,000 coins valued at $5 billion through seizures related to criminal activities.
Secure Storage of Seized Digital Assets
The seized digital assets, including Bitcoin, are securely stored offline in encrypted hardware wallets controlled by federal agencies such as the Justice Department and the IRS.
Impact on Crypto Market and Government’s Approach
The government’s ownership of Bitcoin has raised questions among crypto traders about potential impacts on market prices. However, the government’s approach is not driven by market speculation but by the legal process of managing seized assets.
Government’s Non-Trading Stance
The IRS’s executive director of cyber and forensics services section clarified that the government does not actively trade or time the market, with their actions dictated by the legal process timing.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
