OFAC: first sanctions against cryptocurrency mixer
Last week, on May 6, the Office of Foreign Asset Control (OFAC) sanctioned a cryptocurrency mixer for the first time.
Blender.io: first crypto mixer designated by OFAC
In a press release from last Friday, OFAC announced sanctions against Blender.io, a cryptocurrency mixer. Blender.io is a mixer operating on the Bitcoin blockchain and allowing users to obfuscate the origin and destination of crypto funds.
The release states that the Democratic People’s Republic of Korea (DPRK) used Blender.io for laundering stolen crypto funds. For instance, Lazarus, DPRK’s hacking group, used the mixer to launder $20.5 million of stolen funds from the large-scale Ronin Bridge hack.
Additionally, OFAC added 45 Bitcoin addresses to its SDN list. The addresses have links with high-risk entities such as dark web markets ransomware, hacks, etc. More specifically, Blender.io mixer processed funds related to Hydra dark web market, which has been previously sanctioned by OFAC.
Additionally, OFAC updated its Specially Designated Nationals List (SDN list) with four additional crypto addresses related to the Lazarus group. Lazarus has been sanctioned by OFAC back in 2019. The four addresses sanctioned are:
All four addresses have received funds from the Ronin Bridge hack address, for a total of around 95,000 ETH. However for now,, only the 0x35fb6f6d address has outgoing transactions. It sent funds to eight intermediate addresses which then sent the funds to Tornado.cash mixer.
The three other addresses still hold the funds they received from the Ronin Bridge hack address.
0x08723392 address holds 12,595 ETH;
0x3e37627d address holds 23,528 ETH; and
0xf7b31119 address holds 25,127 ETH.
These four addresses further developed OFAC sanctions against the Lazarus group. Recently, OFAC sanctioned Lazarus-related addresses, directly linking the group to the Ronin Bridge hack.
Scorechain is automatically updating its database with the latest addresses added to OFAC’s sanction list. Customers can thus be notified promptly of any links related to a sanction address or entity. Discover how Scorechain can help you leverage blockchain analytics for enhanced sanction compliance.
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