The United States Treasury Department Imposes Sanctions on Sinbad
The Office of Foreign Assets Control (OFAC) of the United States Treasury Department has imposed strict sanctions on the cryptocurrency mixer Sinbad. This action comes after allegations that Sinbad was involved in laundering stolen funds for the North Korea-based hacking group, Lazarus.
Sinbad’s Involvement in the Axie Infinity Heist
The OFAC has levied sanctions against Sinbad, citing its alleged role in laundering money for the Lazarus Group. Sinbad is accused of processing millions of dollars in virtual currency from various cyber heists carried out by Lazarus. Notable security breaches include the Horizon Bridge hack in June 2022, the Ronin Bridge hack affecting Axie Infinity in March 2022, and the attack on Atomic Wallet in June 2023. These incidents resulted in an estimated loss of around $850 million.
Sinbad Identified as a Preferred Tool for Lazarus
According to Chainalysis and experts at Elliptic, Sinbad.io emerged as a preferred tool for Lazarus in 2022. It is believed that Sinbad is a rebranded version of Blender, a mixer previously blacklisted by OFAC in 2022. The US government has taken control of the Sinbad website to further crack down on illicit crypto operations.
Blacklisting Bitcoin Addresses Associated with Sinbad
The OFAC has blacklisted two Bitcoin addresses and two email addresses associated with Sinbad. This prohibits all US individuals and entities from engaging with these addresses through the global financial system.
North Korea’s Dominance in Crypto Hacking
Deputy Secretary of the Treasury Wally Adeyemo emphasized the seriousness of enabling criminal actors to launder stolen assets through mixing services like Sinbad. North Korea’s Lazarus Group has reportedly amassed close to $240 million in cryptocurrency since June 2023 through various attacks. These include breaches of Atomic Wallet, CoinsPaid, Alphapo, Stake.com, and CoinEx.
Hot Take: Crackdown on Crypto Mixers
The United States Treasury Department’s imposition of sanctions on Sinbad highlights the government’s determination to prevent virtual currency mixers from facilitating illicit activities. With increased scrutiny on the role of crypto in money laundering and hacking, regulators are taking action to curb these illegal operations. This crackdown is part of a broader effort to hold accountable those who aid criminal organizations like Lazarus in their illicit activities. The blacklisting of Bitcoin addresses associated with Sinbad serves as a warning to individuals and entities engaging in such practices. As the crypto industry continues to evolve, it is crucial for regulators and law enforcement agencies to stay vigilant and address emerging threats effectively.
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