US Government Indicts Operators of Crypto Mixing Services Linked to North Korea and Ransomware Groups

Bitcoin and US dollars

Indictments Announced by U.S. Department of Justice

On Friday, the U.S. Department of Justice announced indictments against Russian citizens Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachlavovich Tarasov. The three are accused of operating services that facilitated the laundering of cryptocurrency for criminals.

Crypto Mixing Services as Safe Havens

Ostapenko, Oleynik, and Tarasov were allegedly involved in operating Bender.io and Sinbad.io, two cryptocurrency mixers that "served as safe havens for laundering criminally derived funds, including the proceeds of ransomware and wire fraud," stated Brent Wible, the principal deputy assistant attorney general and head of the Justice Department's Criminal Division.

International Law Enforcement Seizure

The platforms Bender.io and Sinbad.io were seized in an international law enforcement operation in 2023. They are suspected of being used by North Korean hackers, who have become adept at stealing and laundering millions in crypto, as well as ransomware gangs that extort financial ransoms from compromised companies.

Arrests and Charges

Ostapenko and Oleynik were arrested on December 1, 2024, whereas Tarasov remains at large. These actions were disclosed according to a DOJ press release.

Impact on Public Safety and National Security

The trio "made it easier for state-sponsored hacking groups and other cybercriminals to profit from offenses that jeopardized both public safety and national security," according to Wible.

Ostapenko faces charges of money laundering and operating an unlicensed money transmitting business, while Oleynik, 44, and Tarasov face charges of conspiracy to commit money laundering and one count of operating an unlicensed money transmitting business. These charges could result in sentences of up to 30 years in prison.

The seizure notice displayed on the website of Sinbad, a Bitcoin mixing service accused of helping North Korean hackers launder stolen crypto.

The seizure notice displayed on the website of Sinbad, a Bitcoin mixing service accused of helping North Korean hackers launder stolen crypto.

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