Alexander Evgenievich Oleynik and Roman Vitalyevich Ostapenko, who were detained last month, are accused of laundering illicit funds.
Three Russian nationals have been charged with money laundering by a federal grand jury in Georgia for running cryptocurrency mixing services Blender.io and Sinbad.io.
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.
According to the DOJ, a third person, Anton Vyachlavovich Tarasov, is still at large.
Authorities Dismantle Infrastructure of the Crypto Mixers
The two crypto mixers’ supporting infrastructure has already been confiscated and dismantled by authorities.
Blender.io was accused of aiding North Korean hackers in the laundering of money from cybercrimes and was previously sanctioned by the U.S. Treasury Department.
These penalties were the first time the Treasury had taken action against a crypto mixing service, which is a program used to hide online transactions and remove evidence of cryptocurrency transfers from the public domain.
“The defendants ran cryptocurrency ‘mixers’ that functioned as safe havens for laundering funds obtained illegally, including ransomware and wire fraud proceeds, as per the indictment,” said Brent S. Wible, Principal Deputy Assistant Attorney General of the DOJ’s Criminal Division.
He went on to say that these mixers made it easier for state-sponsored hacking organizations and cybercriminals to make money off of crimes that jeopardized national security and public safety.
Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachlavovich Tarasov have been indicted for their involvement in operating the cryptocurrency mixing services https://t.co/O6QYURWB4g and https://t.co/FLvAVVCnft. https://t.co/DTnjHpDQLC pic.twitter.com/jT5Wvu88pC
— US Attorney NDGA (@NDGAnews) January 10, 2025
Crypto mixers have generated intense discussions among U.S. policymakers due to their dubious use in both financial privacy and criminal activity.
In a related case, a federal appeals court declared in November that the underlying technology could not be sanctioned, overturning the Treasury’s sanctions against Tornado Cash.
However, criminal charges against Tornado Cash’s founders are ongoing.
Blender.io ran from 2018 until 2022, when it was shut down. Sinbad.io then became its replacement.
Since then, the Treasury has imposed similar penalties on Sinbad.io for supporting illegal activity. 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, the head trader and co-founder of Wolf Capital, arranged a scheme that defrauded investors out of $9.4 million and entered a guilty plea to charges of wire fraud conspiracy.
Ford presented himself as a “sophisticated investor” who could generate returns of 1% to 2% per day, or an incredible 547% per year.
In order to attract investors between January and August 2023, Ford used social media, the website of Wolf Capital, and other online channels.
But rather than using the money as agreed upon, Ford diverted it for his own benefit, making himself and his accomplices richer.
To the financial detriment of investors, Ford “misappropriated and diverted investor funds to benefit himself and his co-conspirators,” according to the DOJ.
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 a warning about a rise in cryptocurrency scams, particularly those involving cryptocurrency ATMs.