On January 11, 2025, the United States Department of Justice (DoJ) charged three Russian citizens, Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachlavovich Tarasov, with running illicit cryptocurrency mixing services, specifically Blender.io and Sinbad.io.

Arrest and Charges

Ostapenko and Oleynik were apprehended on December 1, 2024, through a collaborative effort involving the Netherlands' Financial Intelligence and Investigative Service, Finland's National Bureau of Investigation, and the U.S. Federal Bureau of Investigation (FBI). The location of their arrest remains undisclosed, while Tarasov continues to evade capture. These individuals are accused of facilitating cryptocurrency mixing—also referred to as tumbling—to conceal the origins of funds acquired through cybercrimes, such as ransomware and wire fraud, effectively enabling state-backed hackers and other cybercriminals to monetize their illegal activities.

Details of Operations

The DoJ stated that Blender.io and Sinbad.io were utilized globally to obscure digital currency transactions linked to ransomware, virtual currency thefts, and additional illegal undertakings. According to U.S. Attorney Ryan K. Buchanan of the Northern District of Georgia, these platforms allowed users to disguise the source and nature of cryptocurrency transactions. Since its launch in 2018, Blender gained notoriety after being sanctioned by the U.S. Treasury Department in May 2022. The service was found to be instrumental for groups tied to North Korea, such as the Lazarus Group, in laundering the proceeds from a significant cyber heist involving the Ronin Bridge. Blender advertised itself with a 'No Logs Policy,' promoting anonymity by not requiring user registration beyond the provision of a receiving address, as highlighted by the DoJ. The mixer also became a laundering hub for Russian ransomware gangs like TrickBot, Conti, and REvil. Despite halting operations one month before the sanctions, blockchain research firm Elliptic disclosed in May 2023 that Blender likely resurfaced under the new guise of Sinbad, continuing its illegal activities. In late 2024, international authorities dismantled the infrastructure of Sinbad, imposing sanctions for handling large sums of virtual currency tied to Lazarus Group's thefts.

Legal Repercussions

Ostapenko faces charges of conspiracy to commit money laundering and operating an unlicensed money-transmission business, while Oleynik and Tarasov are charged with conspiracy and operating an unlicensed business. A conviction on these charges could lead each to a maximum of 25 years in prison. This crackdown on cryptocurrency-related crime coincides with insights from Chainalysis, which uncovered over 1,100 victims of crypto scams totaling more than $25 million in losses, as part of Operations Spincaster and DeCloak in Canada. These scams typically involve deceiving victims into self-custodial wallets where illicit transactions drain their funds.

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