The United States on Friday imposed sanctions on virtual currency mixer Blender, accusing it of being involved in one of the largest cryptocurrency heists ever and of being used by North Korea, the US Treasury Department said.
The Treasury also identified new virtual currency addresses allegedly used by North Korean hacking group Lazarus to launder illegal proceeds, accusing it of stealing hundreds of millions of dollars worth of cryptocurrency linked to the popular online game Axie Infinity. .
“We are taking action against illegal financial activities by the DPRK (North Korea),” Brian Nelson, Assistant Secretary of the Treasury for Terrorism and Financial Intelligence, said in the statement.
Reuters could not immediately reach Blender for comment. The North Korean mission to the United Nations in New York did not immediately respond to a request for comment.
The Treasury Department said it was the first time the US has sanctioned a virtual currency mixer — a software tool that collects and encrypts cryptocurrencies from thousands of addresses — and said it would continue to investigate the use of mixers for illegal purposes.
North Korea has stepped up its efforts to launder stolen cryptocurrency, significantly increasing the use of mixers, blockchain analytics and cybersecurity firm Chainalysis.
The Treasury said Blender was used in the money laundering lawsuit for the Axie Infinity heist in North Korea, and accused it of processing more than $20 million in illegal proceeds.
The Treasury said Blender also facilitated money laundering for, among others, Russia-linked malicious ransomware groups.
Hacks have long plagued crypto platforms. Ronin, a blockchain network that allows users to transfer crypto in and out of Axie Infinity, said digital cash worth nearly $615 million was stolen on March 23.
The US Treasury Department has said Lazarus is controlled by the Reconnaissance General Bureau (RGB), North Korea’s main intelligence agency, which is already subject to US and United Nations sanctions.
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