U.S. Treasury Sanctions Sinbad for Aiding North Korean Cyber Laundering Scheme

The U.S. Treasury Department imposed new sanctions on North Korea’s cyber activities by adding the site “Shinbad” to the Specially Designated Nationals List. Shinbad allegedly played a role in laundering cryptocurrency stolen by Lazarus Group, a North Korean-backed hacking organization. Lazarus reportedly laundered $100 million worth of Bitcoin using a mixer called Sinbad, which obscures the trail of cryptocurrency transactions, making it difficult to track where the money went.

The U.N. Security Council’s North Korea Sanctions Committee, referencing analysis by cybersecurity firm Elliptic Enterprise, highlighted Lazarus’s use of Sinbad to launder cryptocurrency. The Treasury Department emphasized that services facilitating criminal groups like Lazarus will face severe consequences. The sanctions freeze Sinbad’s U.S. assets and forbid U.S. individuals from engaging in business with the company.

North Korea-linked hacker groups, including Lazarus, allegedly stole approximately $1.7 billion worth of cryptocurrency, with analysts suggesting the thefts supported North Korea’s nuclear development program. The sanctions target efforts to prevent cryptocurrency mixers like Sinbad from enabling illicit activities tied to North Korea’s cyber operations.

Read More : FSS Establishes New Bureaus to Regulate Cryptocurrency Market Ahead of Regulatory Changes