US Treasury issues first-ever sanctions against a cryptocurrency mixer

issued its first sanctions against a Bitcoin mixer, Blender.io, for allegedly and “indiscriminately” helping North Korea launder over $20.5 million in crypto from the $620 million on Lazarus Group, an outfit frequently linked to the North Korean government’s cybercrime and cyberwarfare efforts. North Korea has been repeatedly accused of hacking banks and cryptocurrency holders to evade international sanctions and finance its weapons programs.

The Treasury’s Office of Foreign Assets Control also used the opportunity to identify four digital wallets Lazarus reportedly used to launder the rest of the Axie Infinity crypto. The perpetrators relied on one “getaway” wallet for the crime itself.

The agency stressed that most cryptocurrency activity was legal, and that it was only targeting mixers that aid criminals. However, there’s a not-so-subtle warning here: the US is willing to sanction crypto service providers if they tolerate state-backed hackers, not just the nations directing those hacks.