Crypto Exchange CEO Arrested for Assisting Ryuk Ransomware Operators

Russian citizen Denis Dubnikov, co-founder of the cryptocurrency exchanges EggChange and Crypto Coyote, was detained in the Netherlands last week at the request of U.S. law enforcement agencies. According to the FBI, cryptocurrency worth $400,000 passed through his accounts—money that was paid as ransom by victims to the operators of the Ryuk ransomware.

Dubnikov was arrested while attempting to vacation in Mexico, as reported by The Record. He was denied entry into the country, and Mexican authorities sent him to Amsterdam, where he was officially detained by Dutch police at the request of the FBI.

Although arrests of suspects are usually not made public until formal charges are filed, news of Dubnikov’s arrest became widely known after he posted about the incident on Instagram. The account has since been deleted, but many people saved screenshots of his post.

No Official Comments Yet

So far, neither Dutch police nor U.S. officials have commented on Dubnikov’s arrest. The incident has sparked outrage in the Russian cryptocurrency community, with some already demanding an official response from the Russian government regarding Dubnikov’s detention.

Accused of Money Laundering

The Wall Street Journal obtained an extradition request stating that Dubnikov is accused of money laundering. The document claims that in 2018, about $400,000 in cryptocurrency passed through one of his accounts, and law enforcement links these funds to the Ryuk ransomware. It remains unclear whether the specified amount went through Dubnikov’s personal account or through accounts associated with his projects, Coyote Crypto and EggChange.