The US Department of Justice has announced that three Russian nationals have been charged with money laundering by a federal grand jury in Georgia. The individuals are connected to the operation of Blender.io and Sinbad.io, both of which are sanctioned cryptocurrency mixing services. This development highlights the ongoing efforts to crackdown on illicit financial activities in the digital asset space.
Roman Vitalyevich Ostapenko and Alexander Evgenievich Oleynik were apprehended last month on charges of money laundering. The Department of Justice (DOJ) has reported that a third individual involved in the operations, Anton Vyachlavovich Tarasov, is currently evading capture.
Multiple jurisdictions had already seized and dismantled the computer equipment responsible for operating the services. Blender.io, a crypto mixer, had previously faced sanctions by the U.S. Treasury Department for its involvement in concealing the cryptocurrency proceeds from cyber thefts orchestrated by North Korean hackers. This action by the Treasury was significant as it marked the first instance of sanctions against a crypto mixer, a service designed to obfuscate transactions and eliminate the public record of digital assets.
“According to the indictment, the defendants operated cryptocurrency ‘mixers’ that served as safe havens for laundering criminally derived funds, including the proceeds of ransomware and wire fraud,” said Principal Deputy Assistant Attorney General Brent S. Wible, the DOJ’s criminal division chief, in a statement. “By allegedly operating these mixers, the defendants made it easier for state-sponsored hacking groups and other cybercriminals to profit from offenses that jeopardized both public safety and national security.”
The prosecution of crypto mixing services has been a subject of debate among U.S. policymakers and members of Congress. These services, which are known for their role in facilitating both criminal activities and financial privacy, have sparked controversy within the sector.
In a highly publicized case, the Treasury’s sanctions against Tornado Cash were invalidated by a federal appeals court in November. The court ruled that the technology supporting such services cannot be specifically targeted in this manner. Nevertheless, the government is continuing to pursue criminal charges against the founders of Tornado Cash.
Blender.io, which was operational from 2018 to 2022, was eventually shut down by authorities. However, it was swiftly replaced by Sinbad.io, which also faced similar sanctions from the Treasury Department.
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