Uzbekistan man pleads guilty to his role in cryptocurrency scheme

BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced that Nikita Andreevich Sklyuev a/k/a Valeriy Dorojkin, 39, of Uzbekistan, pleaded guilty before U.S. District Judge Richard J. Arcara to wire fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.

In June 2018, Sklyuev submitted a computer software application, "EOSIO Wallet Explorer," to Apple to be sold through the Apple App Store. The EOSIO Wallet Explorer purported to be a cryptocurrency wallet but was in fact a malicious computer software application designed to steal the cryptocurrency user's private key, thereby giving Sklyuev access to the user's cryptocurrency funds. In September 2018, an individual in the Western District of New York (Victim) purchased the EOSIO Wallet Explorer application and then installed it on his iPhone. Once the Victim entered his private key following the installation, Sklyuev had unauthorized access to the Victim's cryptocurrency wallet, which contained approximately 2,092,395.5356 EOS cryptocurrency, which at the time was valued at approximately $11.8 million dollars. On September 25, 2018, Sklyuev changed the private key to the Victim's wallet, which resulted in the Victim losing all control and access to his wallet. In February 2019, Sklyuev transferred the EOS cryptocurrency from the Victim's wallet to numerous other online wallets that were under his control.

The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Allen D. Davis, II and the U.S. Marshals Service, under the direction of Marshal Charles Salina.

Sentencing is scheduled for March 16, 2027, at 10:30 a.m. before Judge Arcara.

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