The Department of Justice (DOJ) has filed criminal charges against two Russian nationals accused of stealing PHP340 million worth of the cryptocurrency XRP from a local virtual currency dealer, Coins.ph. The charges were brought before the Taguig Regional Trial Court (RTC).

The Accused

The accused, Vladimir Evgenevich Avdeev and Sergey Yaschuck, are former consultants for Coins.ph, which is owned by BETUR, Inc. They allegedly hacked into the company’s system and stole 12.2 million XRP, valued at PHP340.745 million.

The DOJ has charged the two individuals under Republic Act No. 10175, also known as the Cybercrime Prevention Act of 2012. According to the DOJ, Avdeev faces 23 counts of cybercrime, with bail set at PHP120,000 for each count, while Yaschuck faces three counts, with the same bail amount for each count.

Method of the Heist

The DOJ’s eight-page resolution indicates that the suspects had an in-depth understanding of Coins.ph’s network infrastructure, secure access key protocols, and server systems. This knowledge allowed them to carry out the heist successfully. The stolen funds were then swapped and transferred through various cryptocurrency services in an attempt to hide their origin and destination, making it difficult for investigators to trace the money.

Official Statement

Justice Secretary Jesus Remulla emphasized the importance of upholding the Rule of Law, even in cyberspace. He noted that cybercriminals are continually evolving their methods to exploit technological advancements. Remulla urged the public to remain vigilant against cyber threats.

The DOJ’s actions against Avdeev and Yaschuck underscore the government’s commitment to combating cybercrime and protecting the integrity of financial transactions in the Philippines. As the case progresses, it serves as a reminder of the importance of cybersecurity and the ongoing efforts to address cyber threats.