The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has targeted a crypto mixer platform for the very first time. According to a statement by Treasury, Blender.io (Blender) has been sanctioned by the US government. Blender is utilized by North Korea for its “malicious cyber activities and money-laundering of stolen virtual currency.”
Treasury states that on March 23, 2022, Lazarus Group, a North Korean state-sponsored cyber hacking group, carried out the largest crypto heist to date, worth almost $620 million, from the online game Axie Infinity. OFAC sanctioned the Lazarus Group on September 13, 2019, pursuant to Executive Order (E.O.) 13722, and identified it as an entity controlled by North Korea.
Blender to mix $20.5 million of the stolen funds.
Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson stated:
“Today, for the first time ever, Treasury is sanctioning a virtual currency mixer. Virtual currency mixers that assist illicit transactions pose a threat to U.S. national security interests. We are taking action against illicit financial activity by the DPRK and will not allow state-sponsored thievery and its money-laundering enablers to go unanswered.”
Treasury said that it is also updating the List of Specially Designated Nationals and Blocked Persons (SDN List) to identify additional virtual currency addresses used by the Lazarus Group to launder illicit proceeds.
Treasury adds that Blender has helped transfer more than $500 million worth of Bitcoin since its creation in 2017.
As a result of OFAC’s action, all property and interests in property of the entity above, Blender.io, that is in the United States or in the possession or control of U.S. persons is blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
