US Justice Department Charges Three Russian Nationals
The US Justice Department has indicted three Russian nationals for operating cryptocurrency mixing services, Blender.io and Sinbad.io, to facilitate money laundering. A federal grand jury in the Northern District of Georgia has charged Roman Ostapenko, Alexander Oleynik, and Anton Tarasov with conspiracy to commit money laundering and operating unlicensed money-transmitting businesses.
Crypto Mixers and Criminal Activity
The indictment alleges that the mixing services laundered money for criminals who stole virtual currency, perpetrated ransomware attacks, and committed other cybercrimes. Principal Deputy Assistant Attorney General Brent Wible said the defendants’ operation made state-sponsored hackers and cybercriminals’ illicit proceeds more valuable, to the detriment of public safety and national security.
In May 2022, the US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Blender.io for allegedly laundering money for North Korea’s Lazarus Group. The funds had come from one of the largest cryptocurrency hacks, linked to the online game Axie Infinity.
Rebranding and Further Sanctions
This February, crypto analytics firm Elliptic reported that Blender.io had likely rebranded itself as Sinbad.io. That apparent rebranding move drew the attention of OFAC, which added the website to its list of sanctioned entities in November 2023 for continuing to launder illicit proceeds.
Arrests and Ongoing Pursuits
US law enforcement arrested Ostapenko and Oleynik in December 2024, but Tarasov remains a fugitive. If convicted, the defendants face more than 25 years in prison for each count. FBI Acting Special Agent in Charge Sean Burke emphasized the global cooperation that has gone into taking down Sinbad.io and bringing the perpetrators to justice.
Wider Enforcement Against Crypto Mixers
The crackdown on crypto mixers extends beyond Blender and Sinbad. Tornado Cash, another prominent mixing service, faced similar enforcement actions. The US sanctioned Tornado Cash in 2022, sparking legal challenges from crypto advocacy groups. Meanwhile, its co-founders faced varying legal outcomes, including Roman Storm’s pending trial in the US and Alexey Pertsev’s prison sentence in the Netherlands.
Mixers of cryptocurrency have become a focal point for regulators and law enforcement in their effort to rein in illicit financial activities in the digital asset space. That continued enforcement is reflective of growing efforts to hold bad actors accountable while pushing for greater transparency in the crypto industry.
