U.S. Sanctions Virtual Currency Mixer Linked to North Korean Heists

U.S. Targets Virtual Currency Mixers

The United States has imposed sanctions on Sinbad, a virtual currency mixer accused of facilitating the laundering of cryptocurrency stolen by North Korea-linked hackers. The Treasury Department announced these measures, highlighting the mixer’s role in processing millions of dollars from significant heists, including the notorious Axie Infinity and Horizon Bridge heists.

North Korean Hacker Involvement

Sinbad is believed to have aided the Lazarus Group, a hacking collective sanctioned by the U.S. for executing some of the largest cryptocurrency thefts. Notably, Lazarus allegedly stole $620 million from a blockchain project associated with the online game Axie Infinity in March 2022. Additionally, the group was reportedly responsible for a $100 million theft from the Horizon bridge, linked to U.S. crypto firm Harmony.

Crackdown on Illicit Activities

The U.S. Treasury, alongside international partners, is committed to curbing the use of virtual currency mixers that enable criminal activities. Deputy Treasury Secretary Wally Adeyemo emphasized the consequences for entities like Sinbad that support laundering operations for groups like Lazarus. The sanctions freeze any U.S. assets of Sinbad and prohibit Americans from engaging with the mixer.

Role and Impact of Currency Mixers

Currency mixers like Sinbad pool and scramble cryptocurrencies to obscure transaction origins, often used to facilitate illicit activities such as sanctions evasion and drug trafficking. Sinbad’s operations mirror those of Blender, another mixer sanctioned last year for similar reasons.

International Cooperation

The enforcement action against Sinbad was a coordinated effort involving the FBI and agencies from Finland and the Netherlands. The crackdown underscores the collaborative approach needed to tackle cybercrime and the misuse of cryptocurrency platforms by criminal entities.

By targeting mixers like Sinbad, the U.S. aims to thwart efforts to launder stolen digital assets and deter future cybercriminal activities.