YoMix Emerges as Alternative Bitcoin Mixer
Following the sanctions imposed on Tornado Cash and the shutdown of Sinbad, YoMix has stepped in as a Bitcoin mixer alternative. Chainalysis recently discovered that a wallet associated with North Korean hacking operations received funds from YoMix, replacing its previous source, Sinbad.
Lazarus Group Adapts Mixer Tactics
The sophisticated cybercriminal group known as Lazarus Group has adjusted its mixer usage in response to the crackdown on popular options. After Tornado Cash was sanctioned, Sinbad became the preferred mixer for North Korea-linked hackers in 2022. However, with Sinbad no longer accessible, YoMix has become a substitute.
In 2023, YoMix experienced significant growth, with inflows increasing by over five times throughout the year. Approximately one-third of all YoMix inflows originate from wallets associated with crypto hacks.
Diversification of Money Laundering Tactics
In 2023, money laundering became less centralized at the deposit address level but more concentrated at the service level. Chainalysis speculates that crypto criminals have been diversifying their money laundering across multiple nested services or deposit addresses to evade detection by law enforcement and exchange compliance teams. This tactic also helps mitigate consequences if any single deposit address is frozen due to suspicious activity.
Exposing Crypto Money Laundering Methods
A significant portion of crypto money laundering involves unsophisticated methods, such as directly sending funds to exchanges. The now-defunct iSpoof service facilitated millions in fraudulent activity by transferring Bitcoin directly to deposit addresses at a centralized exchange.
Cybercriminals with advanced on-chain laundering skills, like Lazarus Group, employ a wider range of crypto services and protocols. In addition to YoMix, these illicit actors are increasingly using cross-chain bridges for money laundering purposes. In 2023, bridge protocols received $743.8 million in crypto from illicit addresses, a significant increase from the previous year.
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