The US Treasury Sanctions Cryptocurrency Mixer Sinbad for Alleged Money Laundering
The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on cryptocurrency mixing service Sinbad, claiming that it was used by the North Korean hackers Lazarus Group as a channel for money laundering. The enforcement agency alleges that Sinbad facilitated the laundering of millions of dollars worth of stolen crypto assets from high-profile hacks.
Lazarus Group Preferred Sinbad to Launder Stolen Crypto Funds
According to OFAC, Sinbad was the preferred mixer for Lazarus Group, a North Korean hacking group that was sanctioned in 2019. The agency accuses Sinbad of helping the group process illicit proceeds from various cryptocurrency heists, including those from Atomic Wallet, Axie Infinity, and Harmony’s Horizon Bridge hacks.
“This website has been seized as part of a coordinated law-enforcement action between the Federal Bureau of Investigation, the Financial Intelligence and Investigation Service (FIOD), and the National Bureau of Investigation taken against the Sinbad.io cryptocurrency mixing service.”
The report also states that cyber criminals used Sinbad to obscure transactions related to drug trafficking, child sexual abuse materials, and sanctions evasion.
3 Crypto Mixers Now Sanctioned in the U.S.
This is the third crypto mixer to be sanctioned by OFAC. The agency previously took action against Blender and Tornado Cash. Roman Semenov, co-founder of Tornado Cash, was added to the specially designated nationals (SDN) list. Another co-founder, Roman Storm, pleaded not guilty to charges following his arrest.
Tornado Cash’s sanction received criticism from the crypto community, but the mixer lost its case against OFAC. Blender, on the other hand, allegedly rebranded as Sinbad.
Hot Take: US Treasury Cracks Down on Cryptocurrency Mixers
The US Treasury’s sanctions on cryptocurrency mixers like Sinbad demonstrate its commitment to preventing money laundering and illicit activities in the digital asset ecosystem. While some in the crypto community may disagree with these actions, the government is determined to hold accountable those who enable criminal actors to launder stolen assets. Responsible innovation is encouraged, but authorities will not hesitate to take action against those involved in illicit activities.
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