Crypto Laundering Crackdown: Sinbad.io Takedown Leads to Major Indictments

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Three Russian citizens have been charged in federal court in the Northern District of Georgia for running Blender.io and Sinbad.io, crypto tumblers. Allegedly, these platforms that help hide the sources of transactions were used by hackers for crypto-currency laundering of money received from ransomware attacks, virtual currency thefts, and other unlawful activities.

The accused are Roman Vitalyevich Ostapenko, 55, and Alexander Evgenievich Oleynik, 44, detained on December 1, 2024. The third defendant, Anton Vyachlavovich Tarasov, 32, is still on the loose. 

Blender.io and Sinbad.io: Key allegations

Blender.io lasted from 2018 to 2022 and marketed itself as a platform which respects user anonymity and does not retain any transaction or user details. After the shutdown of the original site, Sinbad.io appeared, providing the same Bitcoin-mixing services. 

According to investigators, both offered users a service that would mask trader identities for a fee, suggesting that cybercriminals from around the world flocked to the platforms to wash ill-gotten gains.

Sinbad.io was taken down in November 2023 in an action led by the Dutch police and the FBI in cooperation with the Finnish police.

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Links to Global Cybercrime

The two have been recognized by the OFAC – the United States Department of Treasury Office. Blender.io was found to have connectivity to North Korea’s Democratic People’s Republic of Korea (DPRK) where it engaged in the facilitation of the laundering of siphoned cash and also extension of patronage to ransom hackers. Likewise, the newly identified domain Sinbad.io has links to DPRK-backed cyber actors and other cybercrimes.

Cryptocurrency mixer services, such as Blender.io and Sinbad.io remain a thorn in cybersecurity because they provide anonymity to criminal transactions.

The charges on the criminals include conspiracy to engage in money laundering and conducting business via an unlicensed money transmitting business. Both defendants can receive up to 20 years for the conspiracy to money laundering, and another five years for each company operated without a license.

The defendants will stand trial and will be sentenced according to the U.S. Sentencing Guidelines and statutory factors by federal district court judges. On the other hand, apprehension of Tarasov is still ongoing and the police do not let up in chasing and eradicating such operations internationally.