U.S. Secret Service Cybercrime Investigation Results in Nine Year Prison Sentence for Member of Several Elite Russian-Speaking Cybercrime Forums

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The following press release was published by the U.S. Secret Service on July 10, 2017. It is reproduced in full below.

(Washington, D.C.) A multi-year cyber investigation, led by the U.S. Secret Service, culminated

in Virginia federal court with the sentencing of Alexander Tverdokhlebov, 29, of Los Angeles.

Tverdokhlebov, who emigrated from Russia in 2007 and subsequently obtained U.S. citizenship,

was an active member of several highly exclusive Russian-speaking cybercrime forums since at

least 2008. Through his membership on these forums, Tverdokhlebov forged numerous lucrative

business partnerships with other Russian-speaking cybercriminals, with whom he exchanged

hacking tools, services and stolen personal and financial information.

Tverdokhlebov was arrested by the U.S. Secret Service, Los Angeles Field Office in February of

2017. Tverdokhlebov previously pled guilty in March, 2017 to Title 18 United States Code 1343,

wire fraud. This case was prosecuted by the U.S. Attorneys Office for the Eastern District of

Virginia (EDVA).

This case once again demonstrates the Secret Service is committed to protecting our nations

critical financial infrastructure, said Secret Service Director Randolph D. Alles. We are keenly

aware of these types of underground criminal marketplaces and cybercrime forums that specialize

in the sale of stolen financial information and the threats they pose to the financial system. For

decades, the Secret Service has been aggressive in investigating financial crimes and has a long

history of successfully pursuing cyber criminals abroad and in the U.S.

Through these exclusive Russian-speaking cybercrime forums, Tverdokhlebov offered a variety of

illegal services that included the laundering of stolen funds and the operation of several botnets

used to steal credit card and other financial information. At various times, Tverdokhlebov boasted

on cybercrime forums that he possessed 40,000 stolen credit card numbers and could control up

to 500,000 infected computers. In order to monetize the financial information that he stole,

Tverdokhlebov would sell it to other cybercriminals or provide the information to accomplices who

would use it to make fraudulent purchases or fraudulent withdrawals from victims accounts.

It is estimated that Tverdokhlebov is responsible for between $9.5 and $25 million in losses as a

result of his criminal actions. At the time of his arrest, the Secret Service seized $272,000 in

hundred dollar bills from several safe deposit boxes in Los Angeles and Las Vegas. Additionally,

the Secret Service has seized Bitcoin accounts belonging to Tverdokhlebov that are currently

valued at approximately $5 million.

The U.S. Secret Service has taken a lead role in mitigating the threat of financial crimes since the

agencys inception in 1865. As technology has evolved, the scope of the U.S. Secret Services

mission has expanded from its original counterfeit currency investigations to also include

emerging financial, electronic and cyber-crimes. As a component agency within the U.S.

Department of Homeland Security, the U.S. Secret Service has established successful partnerships

in both the law enforcement and business communities across the country and around the world

in order to effectively combat financial crimes.

Source: U.S. Secret Service

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