Three Operators of Cryptocurrency Mixers Charged with Money Laundering Offenses
Three individuals have been indicted by a federal grand jury for their involvement in popular cryptocurrency mixers Blender.io and Sinbad.io. The Russian trio, Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachlavovich Tarasov, are facing charges of money laundering offenses.
Background on Blender.io and Sinbad.io
Blender.io, which operated from 2018 to 2022, boasted a “No Logs Policy” and assured users that their transactions would be completely erased. Following its closure, Sinbad.io emerged on the scene but was also later shut down on November 27, 2023, due to law enforcement action. Both platforms were sanctioned by the Treasury’s Office of Foreign Assets Control (OFAC) after it was discovered that they were utilized by ransomware actors and North Korean hackers to launder stolen cryptocurrency funds.
Research conducted by blockchain analytics firm Elliptic suggested that Sinbad.io was likely created in an attempt to bypass the OFAC sanctions imposed on Blender.io. Sinbad.io was allegedly used to launder funds from the $100 million Horizon heist and proceeded to clean tens of millions in stolen cryptocurrency for North Korea.
Impact on National Security
Blender.io, along with another cryptocurrency mixer, Tornado Cash, is believed to have assisted North Korean threat actors in laundering $475 million from their attack on Axie Infinity. These illicit funds were likely funneled into the country’s weapons programs, posing a significant threat to national security.
Legal Actions and Arrests
Roman Vitalyevich Ostapenko, aged 55, has been charged with conspiracy to commit money laundering and operating an unlicensed money transmitting business. Alexander Evgenievich Oleynik, 44, and Anton Vyachlavovich Tarasov, 32, are facing similar charges. Ostapenko and Oleynik were apprehended on December 1, 2024, while Tarasov is currently evading law enforcement.
Principal Deputy Assistant Attorney General Brent Wible, leading the Justice Department’s Criminal Division, commented on the case, stating, “By allegedly operating these mixers, the defendants made it easier for state-sponsored hacking groups and other cybercriminals to profit from offenses that jeopardized both public safety and national security.” He emphasized the importance of international partnerships in combating the global threat of cybercrime.
Previous Legal Action
In a related case, a dual Russian-Swedish national was sentenced to 12 years and six months in prison for operating the Bitcoin Fog crypto mixer from 2011 to 2021.
As authorities continue to crack down on illegal cryptocurrency activities, it is evident that the misuse of mixers poses a significant risk to financial systems and national security.