Gatineau man facing extradition on ransomware charges denied release

A Gatineau, Que., man accused of being a key playerin an international ransomware ring was denied his release Thursday morning, pending an extradition hearing that could see him face trial for extortion in the United States.

Sbastien Vachon-Desjardinsappeared via video conference to hear the decision in the Quebec Superior Court of Justice.

Justice Catherine Mandeville said Vachon-Desjardins, who was arrested in January 2021, could pose a flight risk or risk of reoffending because he may have access to significant sums of cryptocurrency and the ability to contact an international criminal organization.

Mandeville alsosaid he could use histechnical skills to hide his identity and location,facilitate an escape or evendestroy evidence in the investigation againstNetWalker, the organization he's alleged to have worked with.

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She also raised the concern he could have access tostolen data obtained through crime to forge a new false identity.

According to a document from the RCMP, authorities seized hundreds of thousandsof dollars fromVachon-Desjardins's home and safety deposit boxes after his arrest,while also discoveringa cryptocurrency wallet with contents valued at about $50 million.

Mandeville said information on a Polish server identified Vachon-Desjardins as one of the most profitable affiliates of the NetWalkerorganization, which is alleged to havetargeted businesses and other institutions by encrypting data on their system and ransoming access to those contents.

It's also alleged that NetWalkercould access and steal sensitive personal information about employees, clients or users.

In the weeks before his arrest, Vachon-Desjardins had talked about travelling to Russia and transferred a large sum of bitcoin, the judge said.

Mandeville noted Russia was home to developers in the NetWalkers organization and does not have an extradition treaty with Canada.

Vachon-Desjardinswas previously sentenced to 42 months in prison in June 2015 for drug trafficking.

While the FBI extradition requestis related to businesses and academic institutions he allegedly targetedin the U.S. and France, the RCMP is currently investigating whether he had any Canadian targets, along withseparate drug trafficking charges.

Mandeville said ifhe is found guilty of the charges he'd face in Florida, Vachon-Desjardinscould be imprisoned for upwards of 11 years.

Vachon-Desjardins is next scheduled to make a court appearance on May 31.