Three Russian Nationals Indicted for Operating Crypto Mixers by Georgia Federal Grand Jury

A federal grand jury in Georgia has indicted three Russian nationals for operating cryptocurrency mixing services Blender.io and Sinbad.io, accusing them of money laundering.

Roman Vitalyevich Ostapenko and Alexander Evgenievich Oleynik, who were arrested last month, face charges of laundering criminal proceeds, the U.S. Department of Justice (DOJ) announced on Friday .

A third individual, Anton Vyachlavovich Tarasov, remains at large, according to the DOJ.

Authorities Dismantle Infrastructure of the Crypto Mixers

Authorities have already seized and dismantled the infrastructure supporting the two crypto mixers.

Blender.io, previously sanctioned by the U.S. Treasury Department, was accused of helping North Korean hackers launder funds from cyber thefts.

These sanctions marked the Treasury’s first action against a crypto mixing service—a tool designed to obscure digital transactions and erase public traces of cryptocurrency transfers.

“According to the indictment, the defendants operated cryptocurrency ‘mixers’ that served as safe havens for laundering criminally derived funds, including proceeds from ransomware and wire fraud,” stated Brent S. Wible, Principal Deputy Assistant Attorney General of the DOJ’s Criminal Division.

He added that these mixers facilitated state-sponsored hacking groups and cybercriminals in profiting from crimes that endangered public safety and national security.

Crypto mixers, controversial for their dual use in financial privacy and criminal activity, have sparked heated debates among U.S. policymakers.

In a related case, the Treasury’s sanctions against Tornado Cash were overturned in November by a federal appeals court, which ruled that the underlying technology cannot be sanctioned.

However, criminal charges against Tornado Cash’s founders are ongoing.

Blender.io operated from 2018 until its takedown in 2022, after which Sinbad.io emerged as its successor.

Sinbad.io has since faced similar sanctions from the Treasury for aiding illicit activities. The case underscores the ongoing crackdown on crypto services exploited for illegal purposes.

Crypto Firm Co-Founder Pleads Guilty to $9M Wire Fraud Scheme

Travis Ford, co-founder and head trader of Wolf Capital, has pleaded guilty to charges of wire fraud conspiracy after orchestrating a scheme that defrauded investors out of $9.4 million.

Ford marketed himself as a “sophisticated investor” capable of delivering daily returns of 1-2%, amounting to an astonishing 547% annually.

Ford used Wolf Capital’s website, social media, and other online platforms to lure investors between January and August 2023.

However, instead of utilizing the funds as promised, Ford redirected the money for personal gain, enriching himself and his co-conspirators.

The DOJ stated that Ford “misappropriated and diverted investor funds to benefit himself and his co-conspirators, to the financial detriment of investors.”

The case is part of a broader crackdown on fraudulent crypto schemes.

On January 5, Vietnamese authorities arrested four individuals accused of running a crypto mining scam that defrauded over 200 victims of nearly $157,300.

Similarly, police in Springfield, Massachusetts, issued warnings about a surge in crypto-related scams, particularly those involving cryptocurrency ATMs.