By Mark Hunter
1 day agoMon Jan 13 2025 09:39:14
Reading Time: 2 minutes
- Three individuals have been charged with operating cryptocurrency mixing services used to launder illicit funds
- The mixers, Blender.io and Sinbad.io, allegedly facilitated the concealment of proceeds from ransomware attacks and other cybercrimes
- The defendants face charges including conspiracy to commit money laundering, with the proceeds allegedly assisting North Korea to build its weapons arsenal.
A federal grand jury in Atlanta has indicted three Russians for allegedly helping bad actors, including North Korea, launder cryptocurrencies through mixing services. On Friday, Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachlavovich Tarasov have all been sanctioned for their roles in running Blender.io and Sinbad.io, which are accused of enabling cybercriminals worldwide to obscure the origins of funds obtained through ransomware, virtual currency thefts, and other illegal activities. The indictment is the latest effort by US authorities to clamp down on such activities.
Cryptocurrency Mixers and Their Role in Cybercrime
Cryptocurrency mixers, also known as tumblers, are services that blend various transactions to obfuscate the origin and destination of funds. While they can be used for legitimate privacy purposes, mixers are often exploited by criminals to launder proceeds from illicit activities, making it challenging for law enforcement to trace the flow of illegal funds.
According to the indictment, Ostapenko, Oleynik, and Tarasov operated Blender.io and Sinbad.io, which were allegedly utilized by criminals to launder funds stolen from victims of ransomware attacks, virtual currency thefts, and other crimes.
Blender.io operated from approximately 2018 to 2022, with the website boasting that there was “no way your identity is compromised, or can be linked back to, because as far as blender.io goes they don’t know who you are.” After Blender.io shut down, Sinbad.io began operating within a few months. Like Blender.io, Sinbad.io provided users with Bitcoin concealment services before it was taken down in November 2023 through law enforcement action.
Blender.io and Sinbad.io were both sanctioned at the time of their respective closures by the Department of Treasury’s Office of Foreign Assets Control.
Money Laundering Charges
The defendants are charged with conspiracy to commit money laundering, which carries significant legal penalties. This case highlights the ongoing efforts by U.S. law enforcement agencies to target services that facilitate the laundering of illicit funds through cryptocurrencies. By prosecuting operators of such mixers, authorities aim to disrupt the financial infrastructure that supports cybercriminal activities.
US Attorney Ryan K. Buchanan stated, “This indictment demonstrates our continued commitment to dismantling infrastructure used by cybercriminals to steal from Americans and hide their ill-gotten gains.”
