BUFFALO, N.Y. – A brazen scheme to pilfer millions in cryptocurrency has landed a foreign national in a U.S. courtroom. Nikita Andreevich Sklyuev, also known as Valeriy Dorojkin, 37, of Uzbekistan, was extradited from Ukraine and arraigned today on federal charges of wire fraud and fraudulent use of unauthorized access device. If convicted, Sklyuev faces a maximum penalty of 20 years in prison and a $250,000 fine.
The indictment details a calculated deception dating back to June 2018. Sklyuev allegedly submitted a seemingly legitimate computer software application, dubbed “EOSIO Wallet Explorer,” to Apple’s App Store. This wasn’t a tool to manage cryptocurrency; it was a trap. The application was designed as malicious software, specifically engineered to steal the private keys – the digital passwords – that grant access to a user’s cryptocurrency funds.
In September 2018, a victim in the Western District of New York took the bait, purchasing and installing the EOSIO Wallet Explorer on his iPhone. Once the victim entered his private key, Sklyuev gained unauthorized access to a digital wallet containing a staggering 2,092,395.5356 EOS cryptocurrency. At the time, this digital fortune was valued at approximately $11.8 million. Sklyuev didn’t just access the funds; he seized control. He swiftly changed the private key, effectively locking the victim out of his own account.
The stolen EOS cryptocurrency wasn’t simply held. In February 2019, Sklyuev allegedly transferred the illicit gains to a network of online wallets under his control, attempting to obscure the trail of stolen funds. This wasn’t a spur-of-the-moment grab; it was a pre-planned operation to siphon off a massive digital payout. The victim was left with nothing.
Sklyuev appeared before U.S. Magistrate Judge Jeremiah J. McCarthy this morning and is currently being held pending a detention hearing scheduled for July 3, 2024. His arraignment marks the culmination of a complex international effort. On June 20, 2024, Sklyuev was successfully extradited from Ukraine, thanks to the collaborative work of the Justice Department’s Office of International Affairs, along with authorities in Romania and Ukraine.
The investigation was led by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the U.S. Marshals Service, under the direction of Marshal Charles Salina. Assistant U.S. Attorney Douglas A. C. Penrose is prosecuting the case. It’s crucial to remember that an indictment is merely an accusation, and Sklyuev is presumed innocent until proven guilty in a court of law. But the evidence suggests a cold, calculated theft in the rapidly evolving world of digital finance.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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