(WNY News Now) – A 39-year-old man from Uzbekistan has pleaded guilty to wire fraud after prosecutors said he used a malicious cryptocurrency wallet application to gain access to a victim’s digital assets valued at approximately $11.8 million.

BUFFALO, N.Y. — Nikita Andreevich Sklyuev, also known as Valeriy Dorojkin, pleaded guilty to wire fraud in federal court in connection with a cryptocurrency theft scheme involving a fraudulent application distributed through Apple’s App Store.

U.S. Attorney Michael DiGiacomo announced the plea, which was entered before U.S. District Judge Richard J. Arcara.

According to federal prosecutors, Sklyuev submitted an application called “EOSIO Wallet Explorer” to Apple in June 2018. The application purported to function as a cryptocurrency wallet but was designed to steal users’ private keys, potentially giving the developer access to their digital currency.

In September 2018, a victim in the Western District of New York purchased and installed the application on an iPhone. After the victim entered a private key, Sklyuev allegedly gained unauthorized access to a cryptocurrency wallet containing approximately 2.09 million EOS tokens.

The cryptocurrency was valued at approximately $11.8 million at the time.

Prosecutors said Sklyuev changed the wallet’s private key on Sept. 25, 2018, leaving the victim unable to access or control the funds. In February 2019, he transferred the cryptocurrency to multiple online wallets under his control.

Wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The actual sentence will be determined by the court.

The investigation involved the Federal Bureau of Investigation and the U.S. Marshals Service.

Sklyuev is scheduled to be sentenced on March 16, 2027, at 10:30 a.m. before Judge Arcara in federal court.