SUMMARY
- Indictment Filed: Three Russian nationals have been indicted for operating cryptocurrency mixers Blender.io and Sinbad.io, used to launder cybercrime proceeds.
- Criminal Links: The mixers allegedly facilitated laundering for the Lazarus Group, a North Korean hacking organization, including $20.5M stolen from Axie Infinity.
- Arrests Made: Roman Vitalyevich Ostapenko and Alexander Evgenievich Oleynik were arrested in December 2024; a third suspect, Anton Vyachlavovich Tarasov, remains at large.
- Charges: The defendants face conspiracy to commit money laundering and operating an unlicensed money-transmitting business, with potential 20-year prison sentences.
- Global Effort: The case highlights international collaboration to combat cybercrime and hold cryptocurrency laundering facilitators accountable.
Three Russian nationals have been indicted for their alleged roles in running cryptocurrency mixing services Blender.io and Sinbad.io, used to launder money from cybercrimes. The indictment, filed on January 7 in the Northern District of Georgia, targets Roman Vitalyevich Ostapenko and Alexander Evgenievich Oleynik, who were arrested in December 2024. A third suspect, Anton Vyachlavovich Tarasov, remains at large.
For your information, in November 2023, the US Treasury sanctioned Sinbad.io and seized its domain for providing its services to the North Korean Lazarus group to launder money stolen from numerous data breaches. On the other hand, the Treasury’s Office of Foreign Assets Control (OFAC) also sanctioned Blender.io for assisting the Lazarus Group in laundering millions of dollars worth of cryptocurrency stolen from the crypto-based game Axie Infinity back in July 2022.
What are Cryptocurrency Mixers?
Imagine trying to wash dirty money. In the physical world, criminals might use shell companies or complex transactions to make it hard to trace where the money came from. Cryptocurrency mixers do something similar in the digital world. They take cryptocurrency from multiple users, mix it all, and then send it out to the intended recipients. This process makes it very difficult to follow the money trail and connect the source of the funds to the final destination.
The Allegations
According to the indictment, Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachlavovich Tarasov operated Blender.io from around 2018 to 2022. The service promised complete anonymity, claiming a “No Logs Policy” and deleting all user transaction data. When Blender.io was shut down, Sinbad.io quickly took its place, offering similar services.
Arrests and Charges
Ostapenko and Oleynik were arrested on December 1, 2024. Tarasov is still being sought by authorities. The men are charged with conspiracy to commit money laundering and operating an unlicensed money-transmitting business. If found guilty, they could face up to 20 years in prison.
“This case shows the power of working together across borders to fight cybercrime,” said an FBI spokesperson in a DoJ press release. Authorities are determined to hold those who facilitate online criminal activity accountable.
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