Sinbad: US and European authorities target cryptocurrency service allegedly involved in money laundering for North Korean leaders
TL/DR –
The US Treasury Department has imposed sanctions on Sinbad, a cryptocurrency service it accuses of laundering millions of dollars for North Korea, and the FBI and European law enforcement have seized its website. Sinbad, a “mixing service” that can obscure the source of cryptocurrency, has reportedly laundered large amounts from multiple hacks of cryptocurrency firms, allegedly conducted by North Korea. This action is part of ongoing attempts to disrupt the funding of North Korea’s weapons programs, as it’s estimated that half of the country’s missile program is funded by cyberattacks and cryptocurrency theft.
US Treasury Sanctions North Korean Cryptocurrency Service Sinbad
In a bid to curb North Korean nuclear funding, the US Treasury Department sanctioned the cryptocurrency service Sinbad, accused of laundering millions for Pyongyang’s regime. The service caught the attention of the US officials and European law enforcement agencies leading to the seizure of its website.
North Korea’s missile program is heavily funded by cryptocurrency theft and cyber attacks, a White House official said back in May. US officials are continually looking for ways to intercept the stolen cryptocurrency before it gets converted into hard currency for weapons.
The exploitation of cryptocurrency and tech firms to fund North Korea’s weapons program is regularly discussed with senior US officials, including occasionally President Joe Biden.
Accused of laundering significant portions of the hacks of cryptocurrency firms in the past two years, Sinbad has allegedly helped North Korea steal at least $100 million each time. Sinbad operates as a “mixing service”, obscuring the source of cryptocurrency, enabling North Korea to move money amid increasing law enforcement scrutiny.
North Korea also employs thousands of IT workers overseas, posing as foreign nationals, to raise revenue quietly. A CNN investigation identified a cryptocurrency entrepreneur who unknowingly sent tens of thousands of dollars to a North Korean IT worker.
After the US Treasury sanctioned a mixer popular with North Korea in August 2022, Sinbad became Pyongyang’s go-to crypto mixer, according to experts. And despite the crackdown on Sinbad, North Korea is already moving to other crypto mixing services, says former FBI intelligence analyst Nick Carlsen.
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