FBI and Dutch authorities seize Sinbad.io, believed to be a key tool for North Korean hackers

The FBI and the Dutch Financial Intelligence and Investigation Service have seized the website of Sinbad, a cryptocurrency mixer allegedly used by North Korean hackers and cybercriminals to launder stolen funds. The action, part of an international law enforcement investigation, drew attention to alleged links between the Sinbad platform and the Lazarus Group, widely known to work for the North Korean government.

In an action led by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), Sinbad was sanctioned for his central role in facilitating the Lazarus Group’s money laundering activities. OFAC said Sinbad handled millions of dollars in virtual currency from the Lazarus Group heist, including proceeds from major 2022 hacks such as Horizon Bridge and Axie Infinity.

Deputy Minister of Finance, Wally Adeyemo, emphasized the severity of the consequences for services that facilitate criminal activities. Adeyemo advocated for responsible innovation in the digital asset ecosystem, emphasizing the government’s readiness to use all its tools to prevent virtual currency mixers like Sinbad from supporting illicit activities.

Cryptocurrency monitoring company Elliptic reports that the Lazarus Group reportedly used Sinbad to launder funds stolen from several high-profile hacks, including Stake.com, CoinEx, FTX, BadgerDAO, and others, resulting in losses totaling millions of dollars.

Following the seizure, Sinbad’s website now displays an FBI seizure notice. Despite Wired’s founders previously insisting that it operated legally, the platform is facing increased scrutiny amid allegations it has engaged in illegal activity.

Sinbad joins a growing list of cryptocurrency mixers approved by the U.S. government, including Tornado Cash and Blender.io. OFAC’s statement further emphasized allegations that Sinbad facilitated illicit transactions.

The joint efforts of law enforcement agencies to crack down on platforms like Sinbad highlights the ongoing battle against cybercrime and money laundering activities facilitated by cryptocurrency mixers and highlights the need for strict regulation and vigilance in the digital asset space.