- Banking & financial disputes
Shorter Reads
Earlier this month, the US Department of the Treasury’s Office of Foreign Assets Controls (OFAC) set a new precedent by sanctioning a virtual currency mixer for the first time.
1 minute read
Published 20 May 2022
OFAC deemed Bitcoin mixer “Blender.io” to have been culpable in assisting a North Korea backed heist, which laundered over $20.5million in illicit funds.
OFAC said that Blender.io, which operates on the Bitcoin blockchain, facilitated illicit transactions by obscuring their origin, destination and counterparties. Since its creation five years ago, it has facilitated the transfer of over $500million worth of Bitcoin.
The Lazarus Group, believed to be a North Korean cybercrime ring, used Blender.io to launder the illicit proceeds of a recent large-scale hack against Axie Infinity (a non-fungible token-based online game).
This sanction highlights how US agencies have taken a stricter approach to scrutinising the flow of funds across digital assets for signs of illicit activity. An OFAC spokesperson said, “The virtual currency mixers that assist criminals are a threat to the US national security interests.”
Related content
Shorter Reads
Earlier this month, the US Department of the Treasury’s Office of Foreign Assets Controls (OFAC) set a new precedent by sanctioning a virtual currency mixer for the first time.
Published 20 May 2022
OFAC deemed Bitcoin mixer “Blender.io” to have been culpable in assisting a North Korea backed heist, which laundered over $20.5million in illicit funds.
OFAC said that Blender.io, which operates on the Bitcoin blockchain, facilitated illicit transactions by obscuring their origin, destination and counterparties. Since its creation five years ago, it has facilitated the transfer of over $500million worth of Bitcoin.
The Lazarus Group, believed to be a North Korean cybercrime ring, used Blender.io to launder the illicit proceeds of a recent large-scale hack against Axie Infinity (a non-fungible token-based online game).
This sanction highlights how US agencies have taken a stricter approach to scrutinising the flow of funds across digital assets for signs of illicit activity. An OFAC spokesperson said, “The virtual currency mixers that assist criminals are a threat to the US national security interests.”
Need some more information? Make an enquiry below.
Subscribe
Please add your details and your areas of interest below
Article contributor
Associate
Specialising in Commercial disputes and Banking & financial disputes
Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?
Subscribe to our articlesPlease note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.
Close