Russian Crypto Kingpins Caught: DoJ Cracks Down on $1B Money Laundering Empire

Russian Crypto Kingpins Caught: DoJ Cracks Down on $1B Money Laundering Empire

Russian Nationals Indicted for Operating Cryptocurrency Mixing Services

The U.S. Department of Justice has indicted three Russian nationals for operating cryptocurrency mixing services Blender.io and Sinbad.io, which were allegedly used to launder illicit funds from cybercrime operations.

Two suspects, Roman Vitalyevich Ostapenko (55) and Alexander Evgenievich Oleynik (44), were arrested on December 1, 2024, through a coordinated effort involving Dutch, Finnish, and U.S. law enforcement agencies. The third suspect, Anton Vyachlavovich Tarasov (32), remains at large.

The cryptocurrency mixers served as tools for laundering proceeds from ransomware attacks and wire fraud, enabling cybercriminals and state-sponsored hacking groups to obscure the source of their illegal gains. Notably, the North Korean Lazarus Group used Blender.io to launder funds stolen from the Ronin Bridge hack.

Blender.io, launched in 2018, was sanctioned by the U.S. Treasury Department in May 2022. The service advertised a “No Logs Policy” and anonymous transactions without registration requirements. After ceasing operations, it reportedly rebranded as Sinbad.io in October 2022, which was later seized by law enforcement.

The defendants face charges including conspiracy to commit money laundering and operating unlicensed money-transmitting businesses, with maximum penalties of 25 years imprisonment if convicted.

In related developments, Chainalysis identified over 1,100 victims of cryptocurrency scams through Operations Spincaster and DeCloak, with total losses exceeding $25 million.

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