U.S. Sanctions Crypto Mixer Over North Korea Links; FBI, Finnish Police Seize Site

• U.S. Treasury Department Blocks Crypto Mixing Service Over Alleged Connections to North Korean Hacking Group
• Sinbad Described as a Key Money-Laundering Tool
• Addresses Tied to Sinbad Banned
• Funds Held by Addresses Tied to Sinbad
• Sinbad's Alleged Involvement in Illegal Activities
• Chainalysis and Elliptic's Insights on Sinbad
• U.S. Department of Justice and FBI's Involvement

U.S. Treasury Department Blocks Crypto Mixing Service Over Alleged Connections to North Korean Hacking Group

The U.S. Treasury Department has taken severe measures against a cryptocurrency mixing service for its alleged support of transactions linked to North Korea's notorious hacking group. The service under scrutiny, known as Sinbad, also saw its website taken over by the FBI, Dutch Financial Intelligence and Investigation Service (FIOD), the Netherlands' public prosecutor's office (Openbaar Ministerie), and the Finnish National Bureau of Investigation.

Sinbad Described as a Key Money-Laundering Tool

In a press release disseminated by the Treasury, Sinbad is depicted as a virtual currency mixer that serves as a primary money-laundering tool of the OFAC-designated Lazarus Group. The Lazarus Group, a state-sponsored cyber hacking group, hails from the Democratic People's Republic of Korea (DPRK).

Addresses Tied to Sinbad Banned

The Treasury's Office of Foreign Assets Control, or OFAC, announced the designation of two Bitcoin$42,260 -0.64% addresses and two email addresses associated with Sinbad. Henceforth, all U.S. individuals and entities participating in the global financial system are prohibited from interacting with these addresses.

Funds Held by Addresses Tied to Sinbad

According to data from a Blockchain.com block explorer, one of the designated addresses currently holds around 0.35 BTC, equating to roughly $13,000. This address has, in total, received just over 15 BTC, currently valued at approximately $570,000. An alternate address holds around $67 worth of bitcoin.

Sinbad's Alleged Involvement in Illegal Activities

The release from the Treasury Department also alleged that Sinbad had processed funds derived from the hacks of Horizon Bridge and Axie Infinity. It was indicated that the service has also moved funds related to sanctions evasion, drug trafficking, the purchase of child sexual abuse materials, and additional illicit sales on darknet marketplaces.

Chainalysis and Elliptic's Insights on Sinbad

According to crypto analytics service Chainalysis, Sinbad is a relatively recent player in the field, having begun advertising in October 2022. Meanwhile, Elliptic, another analytics service, claimed that Sinbad was used to transact a portion of the $35 million stolen from Atomic Wallet earlier in the year.

U.S. Department of Justice and FBI's Involvement

When asked for a statement, a spokesperson for the U.S. Department of Justice deferred to the FBI. The FBI has yet to respond to queries.

Edited by Jonathan Stoker