KLAMATH FALLS, Ore. — A Russian national suspected of carrying out the cyber attacks that crippled Sky Lakes Medical Center arrived in Portland for court this week. Denis Dubnikov pleaded not guilty to charges related to his involvement with an international cryptocurrency money laundering conspiracy.
Dubnikov was arrested in the Netherlands before being extradited to Oregon. According to federal investigators Dubnikov laundered more than $400,000 that he collected by carrying out ransomware attacks around the U.S. in 2020. The indictment says there were “multiple” victims in Oregon including the Sky Lakes Medical Center in Klamath Falls.
OTHER STORIES: Oregon hospital demanding $2M from employees
Dubnikov and his accomplices would use a type of software that locks an organization out of its files and threatens to delete them unless payment is made. The associates would then launder the payoffs through multiple cryptocurrency schemes. Many of these virtual currencies are under investigation by federal authorities.
Sky Lakes Medical Center refused to pay the ring and had to cut back on some elective and outpatient services while their systems were offline. Although only $400,000 was confiscated by authorities, they estimate that those involved in the conspiracy laundered at least $70 million in ransom proceeds.
OTHER STORIES: Hackers hit web hosting provider linked to Oregon's online campaign finance records system
Dubnikov was arrested in Amsterdam on Nov. 2, and a jury trial is scheduled to begin on Oct. 4 at the U.S. District Court in Portland, Oregon. If he is convicted, Dubnikov will be facing a maximum sentence of 20 years in federal prison, with a possibility of three years’ supervised release. On top of that he will have to pay a fine of $500,000.
