The Russian government is pursuing the addition of approximately $30 million worth of assets, allegedly seized from former Ministry of Internal Affairs employee Georgy Satyukov, to its treasury. Prosecutors believe Satyukov accepted substantial bribes and used these funds to acquire various luxury items and properties.
Allegations Against Georgy Satyukov
Russian prosecutors are seeking to confiscate property valued at over 2.1 billion rubles from Georgy Satyukov, a former official within the Ministry of Internal Affairs. Satyukov is accused of accepting bribes totaling $184 million in Bitcoin and $30 million in Ethereum.
Acquisition of Luxury Assets
Georgy Satyukov, identified by Russian authorities, is believed to have purchased a range of luxury assets with funds obtained from alleged bribes paid by the operators of the WEX crypto exchange. These assets include thirteen apartments located within Russia, several commercial properties in St. Petersburg, and a villa situated in the United Arab Emirates. Additionally, a property valued at $1 million in Saratov, Russia, was found to be registered under Satyukov’s brother's name.
Beyond real estate holdings, investigators have documented the acquisition of two Porsche Cayenne Turbo vehicles registered in Satyukov's name, all purchased after 2021. His collection also includes seven Patek Philippe watches, an ST Dupont Paris watch, and other jewelry collectively valued at over $1.3 million. A review of Satyukov's bank accounts revealed significant cash reserves, including $540,000, €38,500, and 14.2 million Russian rubles, held by him and his immediate family members.
Satyukov's Career and Salary
Satyukov commenced his employment at the Ministry of Internal Affairs in 2001. From 2019 to 2021, he led a highly classified department known by the codename "K," which was tasked with investigating financial fraud and cybercrime cases. Throughout his entire tenure at the Ministry of Internal Affairs, Satyukov's cumulative salary would have amounted to approximately $126,165.
Legal Action and Lawsuit
The Prosecutor General’s Office has initiated a lawsuit demanding the transfer of movable and immovable property belonging to Satyukov, his relatives, and Dmitry Sokolov to state ownership. Sokolov, identified as a colleague of Satyukov at the Ministry of Internal Affairs, is considered an intermediary in the alleged bribery scheme.
Background of the WEX Exchange
Prior to its eventual collapse, the WEX exchange operated as a prominent platform that emerged in September 2017, succeeding the BTC-e exchange. BTC-e, founded in July 2011 by Alexander Vinnik and Aleksandr Bilyuchenko, handled approximately 3% of all Bitcoin exchange volume by February 2015. However, the U.S. Justice Department ceased its operations in July 2017, charging Vinnik with orchestrating an alleged international money laundering scheme.
The exchange faced accusations of facilitating criminal activities due to its lack of anti-money laundering protocols, know-your-customer procedures, and minimal collection of customer data. WEX had initially pledged to compensate former BTC-e users for their losses. However, by the summer of 2018, WEX clients' accounts were frozen, and withdrawals were only permitted at a 90% loss, resulting in the disappearance of approximately $450 million in cryptocurrency from the exchange.
Alexey Ivanov's Cooperation
Alexey Ivanov, who pleaded guilty to embezzling 3.17 billion rubles from the cryptocurrency exchange, subsequently directed authorities toward Satyukov. This action followed Ivanov's conclusion of a pre-trial cooperation agreement with the Prosecutor General’s Office. In exchange for his cooperation, Ivanov was absolved of criminal liability for paying bribes but received a three-year and six-month sentence for embezzling funds from the exchange's clients.
Current Status and Trial
Satyukov was arrested in absentia and subsequently placed on an international wanted list. His alleged accomplice, Sokolov, reportedly died in Mexico in July 2024, according to his legal representatives. Both individuals are believed to have absconded from Russia to evade prosecution. If convicted in the trial scheduled to commence on December 8, their seized assets could be transferred to the Russian Treasury.