Cryptocurrency mixing service Blender.io has been hit with a crackdown by the US Treasury Department.
The service, which allows users to add an extra layer of anonymity to their cryptocurrency transactions by "mixing" their tokens, will no longer be able to transact with US-based clients.
This is the first time a virtual currency mixer has been sanctioned, according to Treasury Under Secretary for Terrorism and Financial Intelligence Brian Nelson.
Why the move?
The US Treasury says the move is a result of Blender.io assisting cybercriminals, linked to North Korea, who stole nearly €620 million in the March attack on the developer's Ethereum sidechain. Axie Infinity games, Ronin Bridge.
The government department alleges that Blender.io was used to process €20.5 million in ill-gotten coins.
“Virtual currency mixers that aid criminals are a threat to the national security interests of the United States,” a Treasury Department spokesman said. “Treasury will continue to investigate the use of mixers for illicit purposes and will review the range of powers available to respond to illicit funding risks in the virtual currency ecosystem.”
The Ronin attack was not the first time that Blender.io was involved in illicit activity according to the department's statement.
The Blender.io service has helped launder approximately €500 million worth of Bitcoin since its launch in 2017 and has helped facilitate transactions with Russia-linked ransomware groups such as Trickbot, Conti, Ryuk, Sodinokibi, and Gandcrab.
The Blender.io sanctions were not the only measure announced by the US Treasury to crack down on cybercrime.
In addition, the department added four new cryptocurrency wallet addresses linked to North Korea's Lazarus Group, which was widely blamed for the devastating 2017 WannaCry ransomware attack on the NHS and sanctioned by the US government in 2019. .
The move comes amid a broader crackdown on Russia-linked cryptocrime.
So far, a total of 25 Coinbase addresses linked to Russian individuals or entities have been blocked.
In a blog post, Coinbase's chief legal officer, Paul Grewal, said the accounts had engaged in "illicit activity" and while the company is cooperating with the US government on such matters, he claims these accounts have been identified through their own proactive service. surveys.
Through ZDNet