This week, three Russian individuals were indicted for their involvement in overseeing two cryptocurrency mixing services. These operations were partially funded by proceeds acquired from ransomware attacks.
A federal grand jury in the Northern District of Georgia has charged Roman Vitalyevich Ostapenko, 55, Alexander Evgenievich Oleynik, 44, and Anton Vyachlavovich Tarasov, 32, with operating Blender.io and Sinbad.io. These fee-based platforms enabled users to send cryptocurrency to designated recipients while concealing the origin of the funds.
According to a press release from the Department of Justice, Blender.io and Sinbad.io were popular among criminals seeking to hide the origin of their unlawfully obtained funds. The DOJ revealed that the Russian individuals utilized these platforms as secure locations for laundering ransomware profits, cryptocurrency thefts, and other illicit proceeds.
Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division, emphasized the significance of the defendants’ alleged operation of these mixers. He stated that this activity facilitated the ability of state-sponsored hacking groups and other cybercriminals to profit from crimes that posed a threat to both public safety and national security. Wible further highlighted the importance of international partnerships in combating the global menace of cybercrime, as demonstrated by the indictment, arrests, and previous dismantling of the defendants’ criminal infrastructure.
Blender.io, which operated from 2018 to 2022, promoted its “No Logs Policy” and the elimination of any transaction traces in an advertisement shared on a popular internet forum. The advertisement provided reassurance to potential users that no personal details were required and emphasized that Blender.io had no knowledge of their identities.
In November 2023, after the site shut down, a new platform called Sinbad.io emerged, functioning in a similar manner. However, this operation was short-lived as it was taken down by the FBI’s Atlanta field office, Netherlands’ Financial Intelligence and Investigative Service, and Finland’s National Bureau of Investigation. It is worth noting that both Blender.io and Sinbad.io had previously been sanctioned by the Treasury Department’s Office of Foreign Assets Control.
Jelena Ostapenko is charged with one count of conspiracy to commit money laundering and two counts of operating an unlicensed money transmitting business. Additionally, Oleynik and Tarasov are facing charges of one count of conspiracy to commit money laundering and one count of operating an unlicensed money transmitting business.
Each defendant could potentially receive a sentence of up to 20 years in prison for their involvement in the money laundering conspiracy, as well as five years for each count of operating an unlicensed money transmitting business. It is worth noting that Ostapenko and Oleynik were apprehended on December 1, 2024, while Tarasov remains at large.
Matt Bracken, the managing editor of FedScoop and CyberScoop, is responsible for overseeing the coverage of federal government technology policy and cybersecurity. With a diverse background, Matt brings valuable experience to his role. Prior to joining Scoop News Group in 2023, he served as a senior editor at Morning Consult, where he led data-driven coverage of tech, finance, health, and energy.