OFAC Imposes Sanctions on Sinbad.io Mixer for Money Laundering
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned the cryptocurrency mixing platform Sinbad.io. OFAC has labeled Sinbad.io as a “key money-laundering tool” used by the North Korean Lazarus Group crime syndicate. In addition to facilitating transactions from North Korea, Sinbad.io is also linked to processing transactions associated with drug trafficking and sales on darknet marketplaces.
OFAC Claims Sinbad.io Obscured Funds Stolen from Harmony Bridge, Axie, and Atomic Wallet
The Treasury’s OFAC and FinCEN have recently focused on digital currency mixing protocols. Sinbad.io, a Bitcoin mixing platform, is now under scrutiny. According to OFAC, Sinbad.io’s main function is to obscure transaction details and hide the flow of funds on the blockchain. The investigation has found that Sinbad.io was used by the Lazarus Group to launder funds obtained from the Harmony Horizon Bridge and Axie Infinity hacks. Sinbad.io was also used to launder a significant portion of the $100 million worth of virtual currency stolen from Atomic Wallet.
Treasury Department Will Take Action Against Mixing Services Facilitating Money Laundering
The U.S. Treasury’s deputy secretary, Wally Adeyemo, stated that mixing services enabling criminal actors to launder stolen assets will face serious consequences. The Treasury Department is determined to prevent virtual currency mixers like Sinbad.io from facilitating illicit activities. This latest enforcement action by OFAC follows the introduction of new regulations by FinCEN, requiring financial institutions to report transactions involving international cryptocurrency mixing services. The Treasury warns that engaging in certain transactions with Sinbad.io may expose individuals to sanctions.
OFAC Targets Mixers and Identifies Sanctioned Cryptocurrency Addresses
Prior to the proposed regulations, OFAC has taken enforcement actions against mixers such as Blender and Tornado Cash. OFAC has also identified and flagged numerous sanctioned cryptocurrency addresses across various networks. The U.S. Treasury warns that individuals who engage in transactions with Sinbad.io may be exposed to sanctions.
Hot Take: Crackdown on Money Laundering Continues with Sanctions on Sinbad.io
The U.S. Treasury’s OFAC is ramping up its efforts to combat money laundering in the cryptocurrency space. By imposing sanctions on Sinbad.io, a popular mixing platform, OFAC aims to disrupt the operations of the Lazarus Group and prevent the flow of illicit funds. This move follows the Treasury’s recent regulations requiring financial institutions to report transactions involving crypto mixing services. As the Treasury Department cracks down on mixers and identifies sanctioned cryptocurrency addresses, individuals engaging in such transactions are at risk of facing serious consequences. It is evident that the U.S. government is determined to safeguard the integrity of the financial system and protect against illicit activities.
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