- The U.S. Treasury Department sanctioned the cryptocurrency mixer Sinbad for allegedly laundering millions of dollars for North Korean hackers.
- Sinbad is accused of processing stolen funds from major cryptocurrency heists linked to the North Korea-based Lazarus Group.
- These are the latest sanctions aimed at crypto mixers accused of enabling illegal activity, though past actions have faced some industry pushback.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed new sanctions on the cryptocurrency mixer Sinbad, alleging it facilitated money laundering for North Korea-linked hackers.
The Allegations Against Sinbad
According to OFAC, Sinbad processed millions of dollars worth of virtual currency stolen in cyberattacks conducted by the North Korea-based Lazarus Group. These attacks include the 2022 hack of Horizon Bridge, the 2022 hack of Axie Infinity’s Ronin Bridge, and the 2023 hack of Atomic Wallet. The total losses from these hacks amounted to around $820 million.
OFAC Claims Sinbad Enabled Lazarus Group Laundering
In its announcement, OFAC stated that mixing services like Sinbad that allow groups such as Lazarus to launder stolen assets will face consequences. The Treasury Department is prepared to use all available tools to prevent crypto mixers from enabling illegal activities.
Previous Crypto Mixer Sanctions
This is not the first time OFAC has sanctioned a cryptocurrency mixer. It previously imposed sanctions on Tornado Cash and Blender, alleging they also laundered funds for Lazarus. Some in the crypto industry have pushed back against sanctions on crypto software tools.
The Path Forward
The Sinbad sanctions are part of a broader U.S. government effort to crack down on North Korean cybercrime. However, the response from the crypto community remains to be seen. Previous mixer sanctions by OFAC have been met with lawsuits, though judges have ruled in the Treasury’s favor. The sanctions are unlikely to end the cat-and-mouse game between North Korean hackers and U.S. authorities.
