A Moscow court on Monday denied bail for Pavel Vrublevsky, a Russian businessman who was charged earlier this year with hiring hackers to launch costly online attacks against his rivals. The denial came even after Vrublevsky apparently admitted his role in the attacks, according to Russian news outlets.
Vrublevsky, 32, is probably best known as the co-founder of ChronoPay, a large online payment processor in Russia. He was arrested in June after Russian investigators secured the confession of a man who said he was hired by Vrublevsky to launch a debilitating cyber attack against Assist, a top ChronoPay competitor. The former ChronoPay executive reportedly wanted to sideline rival payment processing firms who were competing for a lucrative contract to process payments for Aeroflot, Russia’s largest airline. Aeroflot’s processing systems faltered for several days in the face of the attack, an outage that Aeroflot says cost the company about a million dollars a day.
Vrublevsky’s lawyers asked the court to release him pending a trial in December — offering to pay 30 million rubles (~ USD $1 million) — but the court denied the request.
Vrublevsky co-founded ChronoPay in 2003 along with Igor Gusev, another Russian businessman who is facing criminal charges in Russia stemming from his alleged leadership role at GlavMed and SpamIt, sister programs that until recently were the world’s largest rogue online pharmacy affiliate networks. Huge volumes of internal documents leaked from ChronoPay last year indicate Vrublevsky co-ran a competing rogue Internet pharmacy — Rx-Promotion — although Vrublevsky publicly denies this.
Vrublevsky and Gusev have been locked in an increasingly heated and public battle to ruin the others’ business, a saga that I have chronicled in an ongoing series: Pharma Wars.