US Treasury Sanctions Sinbad for North Korea-Linked Hacks
In a significant move against cybercrime, the United States Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against the cryptocurrency mixer Sinbad. This action comes in response to allegations that Sinbad facilitated money laundering for the North Korea-based hacking group Lazarus.
Sinbad Linked to Major Crypto Heists
The OFAC’s sanctions against Sinbad follow investigations linking the platform to laundering millions of dollars from high-profile cryptocurrency heists. These heists include the June 2022 Horizon Bridge hack, the March 2022 Axie Infinity’s Ronin Bridge hack, and the June 2023 Atomic Wallet hack. The combined losses from these attacks amount to approximately $820 million.
Wally Adeyemo, deputy secretary of the Treasury, emphasized the government’s commitment to combating crypto-based criminal activities. He stated that mixing services like Sinbad, which facilitates money laundering for groups such as Lazarus, will face severe repercussions. The Treasury Department and other U.S. and international law enforcement agencies are actively working to prevent such platforms from supporting illicit activities.
The seizures conducted by the U.S. Department of Justice, the Federal Bureau of Investigation, and international agencies from the Netherlands and Finland underline a coordinated global effort to curb cybercrime in the cryptocurrency domain. The Treasury clarified that the sanctions encourage positive behavioral change rather than punitive measures.
Legal Battles Follow Crypto Mixer Sanctions
This is not the first instance of OFAC sanctioning cryptocurrency mixers. Previously, platforms like Tornado Cash and Blender have faced similar actions. Notably, Blender was also accused of laundering funds for the Lazarus Group. Risk management firm Elliptic reported a probable link between Sinbad and Blender, suggesting a possible rebranding to evade sanctions.
Following the sanctions against Tornado Cash, the crypto community filed a lawsuit against the U.S. government.Treasury by a group supported by the crypto exchange Coinbase. They alleged overreach by the government department. However, a judge ruled in favor of the Treasury, with the case currently under appeal.
The impact of the US Treasury sanctions against Sinbad on the wider cryptocurrency market and investor sentiment remains to be seen. Past sanctions have led to legal challenges and debates within the crypto community about regulatory overreach and the balance between privacy and security.
Read Also: ProShares Futures Bitcoin ETF Hits ATH on Spot ETF Hype
- Metamask Airdrop Countdown Begins as Wallet Team Registers Token Claim Domain
- $2.5T Citigroup Partners With Coinbase to Enable Stablecoin Payments
- Who Will Be the Next Fed Chair? Scott Bessent Confirms Final Five Candidates
- Mt. Gox Delays Repayments to 2026 as Trump-Backed American Bitcoin Adds 1,414 BTC
- Crypto ETFs Attract $1B in Fresh Capital Ahead of Expected Fed Rate Cut This Week
- Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms
- Dogecoin Price Prediction As Whales Scoop Over $300 Million- Is A Bull Run Ahead?
- Pi Coin Price Jumps 24% as 10M Tokens Exit Exchanges – Can Bulls Sustain the Momentum?
- Bitcoin Price Prediction If President Trump Announces Deal with China on October 30th- Can BTC Break $125k?
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
MEXC