The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued its first-ever sanctions on a crypto mixer. According to the Treasury Department, the mixing service was used in order by Lazarus Group for processing illicit proceeds of the $620million crypto heist from AxieInfinity.
Treasury Department Sanctions Crypto Mixer
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced Friday that it has sanctioned crypto mixer Blender.io (Blender). According to the OFAC, this mixing service is used by the Democratic People’s Republic of Korea (DPRK) “to support its malicious cyber activities and money-laundering of stolen virtual currency.”
According to this announcement, Lazarus Group (a DPRK-sponsored cyber hacking organization) carried out the biggest cryptocurrency heist, valued at almost $620million, on March 23. The heist was linked to an online game Axie Infinity. The OFAC added the following:
Over $20.5 Million of illicit proceeds were processed using Blender.
The OFAC sanctioned the Lazarus Group on Sept. 13, 2019, and “identified it as an agency, instrumentality, or controlled entity of the government of the DPRK,” the announcement adds. The designation is based on the group’s “relationship to the U.S.- and UN-designated Reconnaissance General Bureau, the DPRK’s premiere intelligence organization.”
Brian E. Nelson is the Under Secretary for Terrorism and Financial Intelligence.
Treasury has today approved a virtual currency mixer for the very first time.
Also, Blender assisted in the laundering of money for Russian-linked Malign Ransomware Groups like Trickbot and Conti as well as Ryuk, Sodinokibi and Ryuk.
U.S. Treasury Department clarification:
Virtual currency is generally legal but can still be used in illicit activities such as sanctions evasion.
“This includes the facilitation of heists, ransomware schemes, and other cybercrimes,” the Treasury noted.
Announcement explains that Blender.io has all rights and property in America and is under the custody or control of U.S. people. Additionally, entities with 50% ownership or more are subject to sanctions. Any transactions that take place in the U.S. or involve blocked or designated persons, are also prohibited.
Let us know your thoughts on OFAC’s approval of crypto-mixers. Comment below to let us know your thoughts.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.