WASHINGTON D.C. – A pair of Russian nationals are facing U.S. sanctions and federal charges after a years-long phishing scheme siphoned at least $16.8 million from customers of American and foreign virtual currency exchanges. The U.S. Department of the Treasury, in concert with the Department of Justice and Department of Homeland Security, announced the sanctions against Danil Potekhin and Dmitrii Karasavidi for their roles in the elaborate fraud.
The scheme, active in 2017 and 2018, relied on deceptively similar websites – “spoofed” domains – designed to mimic legitimate virtual asset service providers. Unsuspecting customers, believing they were logging into their real accounts, instead handed over their usernames and passwords directly to Potekhin and his network. Once inside, the hackers didn’t just grab and run. They employed a dizzying array of techniques to conceal their tracks and maximize profits.
According to investigators, Potekhin created the fake websites, while Karasavidi handled the laundering of the stolen funds. The pair used stolen or fabricated identities to open exchange accounts, bypassed security measures, and rapidly moved the virtual currency through multiple intermediary addresses. They even engaged in a manipulative “pump and dump” scheme, artificially inflating the price of certain currencies before quickly selling them off for a profit. The Secret Service traced the stolen funds to an account held by Karasavidi, seizing millions in both virtual currency and U.S. dollars.
“The individuals who administered this scheme defrauded American citizens, businesses, and others by deceiving them and stealing virtual currency from their accounts,” stated Secretary Steven T. Mnuchin. The Treasury Department’s Office of Foreign Assets Control (OFAC) designated Potekhin and Karasavidi under Executive Order 13694, as amended, which targets malicious cyber activity for financial gain. Both men are also named in a Department of Justice indictment unsealed today.
The case underscores the increasing sophistication of cybercriminals targeting the burgeoning virtual currency market. The Secret Service, traditionally focused on counterfeiting since its founding in 1865, has adapted to track and seize fraudulently obtained digital assets. The agency’s San Francisco Field Office played a key role in the investigation, working alongside the U.S. Attorney’s Office for the Northern District of California.
This isn’t just about stolen money; it’s about eroding trust in a rapidly evolving financial system. Treasury officials say they remain “committed to the safe and secure use of emerging technologies in the financial sector.” But with actors like Potekhin and Karasavidi constantly refining their tactics, the battle to protect virtual currency users is far from over. The Secret Service vows to continue attributing these cyberattacks and bringing perpetrators to justice.”
Related Federal Cases
- Two Foreign Nationals, ID Theft Scheme, Los Angeles CA, 2023 · California
- Emily Thompson, Theft of Property, New York NY, 2023 · Pennsylvania
- Wall Street Firms, Financial Malfeasance, New York NY, 2023 · Texas
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · Pennsylvania
- Christopher Guilford, Tax Refund Scheme, Sacramento CA, 2025 · Virginia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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