Armenian national pleads guilty in Ryuk ransomware case tied to $15 million in bitcoin

Prosecutors said Karen Serobovich Vardanyan helped extort about 1,610 bitcoin from U.S. victims between November 2019 and April 2020, with sentencing set for Sept. 22, 2026.

BTC

Summary

Karen Serobovich Vardanyan, a 34-year-old Armenian national extradited from Ukraine, pleaded guilty on July 8 to conspiracy and computer fraud in a Ryuk ransomware case that federal prosecutors said extracted more than $15 million in bitcoin from U.S. victims. Prosecutors alleged the campaign collected about 1,610 bitcoin from attacks carried out between November 2019 and April 2020, including 200 bitcoin paid by a Michigan company to regain access to its network, a transfer worth more than $1.1 million at the time. The scheme used Ryuk ransomware to encrypt files, disable workstations and lock organizations out of corporate data, then demanded Bitcoin payments in exchange for decryption keys. A plea agreement requires more than $1.1 million in restitution, and Vardanyan is scheduled to be sentenced on Sept. 22, 2026, when a U.S. district court judge will review the agreement and applicable federal guidelines.

Terms & Concepts
  • Ryuk ransomware: Malware that encrypts systems for ransom
  • decryption keys: Codes used to unlock encrypted data
  • restitution: Court-ordered repayment to victims