Federal prosecutors alleged a Ryuk ransomware operation extracted more than $15 million in bitcoin from U.S. organizations. An Armenian national admitted participating in attacks that disrupted hundreds of corporate systems and forced victims to purchase decryption keys with cryptocurrency.
Key Takeaways
Authorities said the cybercrime campaign collected roughly 1,610 bitcoin, with a Michigan company alone transferring 200 bitcoin after an attack.Meanwhile, the guilty plea requires more than $1.1 million in restitution, while sentencing could result in substantial prison time, fines, and supervision.Investigators from the FBI, the Justice Department, and Ukrainian authorities coordinated efforts, with sentencing expected after judicial review of the plea agreement.Federal prosecutors explained in a press release on July 9:
Federal Plea Sets Restitution Terms Ahead of September SentencingGrand jurors in Portland indicted Vardanyan on Feb. 22, 2024, on conspiracy, computer fraud, and extortion counts. His plea resolved the conspiracy and computer fraud charges, and the agreement requires him to provide more than $1.1 million in restitution.
Federal prosecutors wrote:
“Vardanyan faces a maximum sentence of five years in prison, a $250,000 fine, and three years of supervised release for conspiracy. He faces a maximum sentence of 10 years in prison, a $250,000 fine, and three years of supervised release for computer fraud. Vardanyan will be sentenced on Sept, 22. 2026, buy a U.S. district court judge.”
Potential penalties include separate prison terms, fines, and supervised release for each offense. A U.S. district court judge will determine the sentence Sept. 22, 2026, after reviewing the plea agreement, restitution obligation, applicable federal guidelines, and other materials submitted before the hearing.
