In November 2023, the FBI seized Sinbad.io following its alleged use by cybercriminal groups, notably the Lazarus Group, a North Korean state-sponsored hacking organization. The U.S. Department of the Treasury identified Sinbad.io as a preferred platform for laundering stolen cryptocurrency. Authorities claim Sinbad.io was used to process significant sums of illicit funds, including portions of the $600 million stolen from Axie Infinity in March 2022 and the $100 million taken from Horizon Bridge. 

 

Blender.io became the first cryptocurrency mixer sanctioned by the U.S. Treasury in May 2022. The service was accused of aiding North Korean hackers in laundering stolen cryptocurrency. Authorities from multiple jurisdictions have since dismantled the infrastructure supporting these services. Despite assurances from Blender.io's operators that they would not retain user data or transaction logs, the service was implicated in concealing illicit transactions. Although Blender.io reportedly ceased operations in 2018, Sinbad.io began operations shortly after, continuing similar activities. 

Ongoing Investigation and Legal Proceedings 

 

The U.S. Attorney's Office for the Northern District of Georgia is leading the prosecution. Details regarding the locations of Ostapenko and Oleynik's arrests or potential extradition remain undisclosed. An arrest warrant has been issued for Tarasov, who is still at large. 

 

“These mixers were allegedly operated by the defendants to enable state-sponsored hackers and other cybercriminals to profit from crimes that threaten public safety and national security,” stated Brent Wible, Principal Deputy Assistant Attorney General in the DOJ's Criminal Division. The investigation remains ongoing as authorities work to locate Tarasov and further dismantle networks facilitating cybercrime.