Bitcoin mixer Sinbad.io sanctioned by the United States after server seizures

On November 29, OFAC added the cryptocurrency-mixing service Sinbad.io to the sanctions list for laundering assets belonging to the North Korean Lazarus group.

According to the agency, the mixer processed millions of dollars in cryptocurrency obtained, including as a result of hacker attacks on cross-chain bridge Horizon of the Harmony protocol, used in the blockchain game Axie Infinity Ronin sidechain and the Atomic Wallet wallet. The total damage from these three hacks amounted to about $820 million.

In addition, Sinbad.io was used to evade sanctions, pay for drugs, procure child sexual abuse material, and other purchases on the dark web.

U.S. authorities say the service provided material and technical support to the North Korean government and also aided cybercriminal activity directed at the United States.

OFAC has blocked any Sinbad.io property within U.S. jurisdiction. Residents and citizens are prohibited from dealing with it. Foreign financial institutions also face sanctions risk for conducting operations in support of Sinbad.io.

Two Bitcoin addresses of the mixer are included in the SDN.

Sinbad.io’s operation was halted on November 27 after server seizures in the Netherlands and Finland.

According to FIOD, in 2023 alone the mixer laundered at least $178 million in cryptocurrency. More than 50% of assets passing through the service have a criminal origin.

Sinbad became the primary mixer for laundering the Lazarus group’s cryptocurrency after Blender and Tornado Cash were sanctioned.

The hackers themselves have been under U.S. sanctions since September 2019.

In April 2023, the U.S. Treasury identified three OTC traders, who conducted cryptocurrency deals worth tens of millions of dollars for Lazarus.