The U.S. Treasury Department Sanctions North Korean Government’s Crypto Mixer Sinbad
The U.S. Treasury Department has announced sanctions on Sinbad, a crypto mixer used by the North Korean government’s cyber-hacking collective Lazarus Group for money laundering. Sinbad has processed millions of dollars in virtual currencies stolen by the group and has been linked to various illicit activities such as sanctions evasion, drug trafficking, and the purchase of illegal materials. Deputy Secretary of the Treasury Wally Adeyemo stated that mixing services like Sinbad that facilitate criminal activities will face serious consequences.
Previous OFAC Sanctions
The Office of Foreign Assets Control (OFAC) previously sanctioned Lazarus Group and its sub-groups Bluenoroff and Andariel in 2019. In 2022, OFAC sanctioned Blender, the precursor to Sinbad, and in 2022 sanctioned Tornado Cash for providing crypto-mixing services to Lazarus Group. Three individuals involved in supporting Lazarus Group were also sanctioned in April 2023.
North Korea’s Money Laundering Activities
The U.S. Treasury claims that North Korea uses stolen virtual currency for money laundering purposes and employs IT workers to fraudulently generate revenue to support its unlawful weapons programs. Sinbad has been involved in several high-profile heists, including the Axie Infinity heist and two $100 million heists.
Potential Sanctions for Individuals
Engaging in dealings with Sinbad may lead individuals to be sanctioned themselves in the future. All property and interests related to Sinbad must be blocked and reported to OFAC.
Hot Take: U.S. Treasury Takes Action Against North Korean Crypto Mixer
The U.S. Treasury Department has imposed sanctions on Sinbad, a crypto mixer used by the North Korean government for money laundering. Sinbad has been linked to various illicit activities, including sanctions evasion and drug trafficking. The Treasury Department warns that mixing services facilitating criminal activities will face serious consequences. This move follows previous sanctions on Lazarus Group and its sub-groups, as well as individuals supporting the group. The U.S. Treasury claims that North Korea uses stolen virtual currency to launder money and support its unlawful weapons programs. Individuals engaging with Sinbad may face sanctions themselves.
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