A New Cryptocurrency Mixer, Sinbad, Linked to North Korean Money Laundering
Elliptic, a blockchain analysis company, has reported that a sanctioned cryptocurrency mixer previously known as Blender has rebranded as Sinbad to evade US scrutiny. Sinbad has been used to launder digital money for North Korea, particularly in connection with the $100 million heist of Horizon.
Sinbad, launched in October 2022, has been involved in cleaning tens of millions in stolen crypto-cash for the hermit nation. Elliptic has identified several similarities between Sinbad and its predecessor, Blender, including shared Bitcoin wallets, similar transaction characteristics, and website structures.
According to Elliptic, Sinbad may have rebranded to avoid sanctions and regain user trust after Blender’s abrupt closure and the disappearance of funds. The company speculates that the US Office of Foreign Assets Control (OFAC) could impose further sanctions on Sinbad to curb illicit activities.
Blender, along with another mixer called Tornado Cash, was implicated in helping North Korean threat actors launder $475 million from the Axie Infinity attack. These funds are likely to support North Korea’s weapons and nuclear programs, highlighting the detrimental impact of cryptocurrency theft.
Last year, a staggering $3.8 billion was stolen from cryptocurrency firms, with $1.7 billion attributed to North Korean hackers, as reported by Chainalysis.
As the cryptocurrency landscape continues to evolve, regulatory authorities and blockchain analysis companies play a crucial role in identifying and mitigating illicit activities in the digital asset space. The emergence of mixers like Sinbad underscores the ongoing challenges in combating money laundering and terrorist financing through cryptocurrencies.