US Treasury Sanctions Crypto Mixer Sinbad for Alleged North Korea Ties
The United States Treasury Department has taken action against cryptocurrency mixer Sinbad, accusing the platform of being involved in laundering funds for the North Korea-based hacking group Lazarus.
According to the Office of Foreign Assets Control (OFAC), Sinbad has been implicated in processing millions of dollars’ worth of virtual currency from Lazarus Group heists. These include the June 2022 hack of Horizon Bridge, the March 2022 hack of Axie Infinity’s Ronin Bridge, and the June 2023 hack of Atomic Wallet. These cyberattacks resulted in a combined loss of approximately $820 million at the time.
OFAC’s announcement on Nov. 29 has shed light on the extent of Sinbad’s involvement in facilitating illicit financial activities, particularly linked to Lazarus Group’s cybercrime endeavors.
The sanctions imposed on Sinbad underscore the US government’s commitment to cracking down on entities that enable money laundering for nefarious actors. The move is part of a broader effort to combat illicit financial activities in the cryptocurrency space and hold accountable those who aid and abet such criminal activities.
The crackdown on Sinbad serves as a reminder of the regulatory scrutiny facing the cryptocurrency industry, with authorities intensifying efforts to curb illicit financial activities and ensure compliance with anti-money laundering and counter-terrorist financing regulations.
While the cryptocurrency ecosystem continues to evolve, regulatory oversight remains a key priority for authorities seeking to safeguard the integrity of the financial system and protect consumers from financial crimes.
