US to impose sanctions on bitcoin ‘mixer’ company for aiding North Korea

Published May 7, 2022
The United States announced sanctions on Friday on virtual currency mixer Blender.io, saying the service was used by a North Korean cyber hacking group to support weapons programmes. —Reuters
The United States announced sanctions on Friday on virtual currency mixer Blender.io, saying the service was used by a North Korean cyber hacking group to support weapons programmes. —Reuters

NEW YORK: The United States announced sanctions on Friday on virtual currency mixer Blender.io, saying the service was used by a North Korean cyber hacking group to support weapons programmes, the Treasury Department said.

US officials said the case marks the first US sanctions on a virtual currency “mixer,” which is used to conceal participants in transactions involving Bitcoin and other cryptocurrencies.

Officials said the Lazarus Group, a North Korean-backed cyber hacking group, stole $620 million from the online game Axie Infinity, employing Blender to process over $20.5 million of the illicit funds.

Blender was used by the Democratic People’s Republic of Korea (DPRK) “to support its malicious cyber activities and money-laundering of stolen virtual currency,” said the Treasury Department.

“Under the pressure of robust US and UN sanctions, the DPRK has resorted to illicit activities, including cyber-enabled heists from cryptocurrency exchanges and financial institutions, to generate revenue for its unlawful weapons of mass destruction and ballistic missile programs.” “While the purported purpose is to increase privacy, mixers like Blender are commonly used by illicit actors,” said the Treasury Department.

Blender has been used to transfer more than $500 million worth of Bitcoin since 2109. Besides aiding the DPRK, Treasury officials also found the service supported Russian-linked malign ransomware groups.

Published in Dawn,May 7th, 2022

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.