Georgia federal prosecutors announced money laundering and unlicensed money transmission charges on Friday against three Russian nationals who allegedly ran crypto mixing services previously sanctioned due to their use by North Korean hackers and other cybercriminals.
A grand jury indictment, issued on January 7, charged Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachlavovich Tarasov with conspiracy to launder money and operating an unlicensed money transmitting business through their alleged involvement with the crypto mixers Blender.io and Sinbad.io. While Ostapenko and Oleynik were arrested last month, Tarasov remains at large.
U.S. Attorney Ryan K. Buchanan explained in a public statement that Blender.io and Sinbad.io were allegedly used by criminals worldwide to launder funds stolen through ransomware, virtual currency thefts, and other crimes.
Crypto mixing services like Blender and Sinbad work by breaking down and combining crypto transactions, “mixing” them to obscure the trail of funds. Though these services can have lawful uses for privacy, Blender and Sinbad allegedly became hotbeds for laundering criminal proceeds from ransomware, wire fraud, and other illicit activities. Brent S. Wible, head of the U.S. Department of Justice’s Criminal Division, stated that by operating these mixers, the defendants made it easier for cybercriminals, including state-sponsored hacking groups, to profit from illegal activities that endanger public safety and national security.
