William Turton
Hackers affiliated with the North Korean government have a new tool to launder stolen virtual currency, according to crypto tracing firm Elliptic Enterprises Ltd
The hackers, which are sometimes referred to as the Lazarus Group, are using a new laundering tool called Sinbad, the firm said. Sinbad is “highly likely” to be a related successor to another crypto mixer called Blender, which was sanctioned by the US Treasury Department in May 2022.
Read More: US sanctions virtual currency mixer tied to North Korea
The Lazarus hackers have conducted some of the largest crypto heists of all time. Last year, the hackers were accused of stealing more than $600 million from online game Axie Infinity. Shortly after that, the same hackers stole $100 million from a cryptocurrency bridge called Horizon.
“Sinbad was launched in early October 2022, and despite its relatively small size, it soon began to be used to launder the proceeds of Lazarus hacks,” Elliptic said in a blog post. “Tens of millions of dollars from Horizon and other North Korea-linked hacks have been passed through Sinbad to date and continue to do so, demonstrating confidence and trust in the new mixer.”
According to Elliptic, Sinbad is a rebranding of Blender, “with the same individual or group responsible for it.”
Read More: Crypto thefts hit record $3.8 billion on North Korea hacks
The two services have technical similarities, according to Elliptic. In addition, a suspected Blender operator transacted with crypto wallets associated with Sinbad before the service launched, according to Elliptic.
Crypto mixers are software that allows users to obfuscate the sources and destinations of cryptocurrency holdings and are used by hackers in attempts to exchange crypto into fiat currency. Exchanges may block transactions if funds are suspected to be stolen. Crypto tracing companies like Elliptic and Chainalysis assist law enforcement in unraveling laundered cryptocurrency.
Read More: Axie Infinity CEO moved crypto tokens before hack disclosure
North Korean hackers have sent more than $24 million to the Sinbad mixer, according to Chainalysis.
