The U.S. Sanctions Blender.io for Assisting Axie Infinity Hackers

The U.S. Sanctions Blender.io for Assisting Axie Infinity Hackers

According to a statement released on Friday, the US Department of Treasury’s Office of Foreign Assets Control (OFAC) has placed bitcoin mixing service platform, Blender.io, to its sanction list. North Korea allegedly exploited the service, which allows anyone to obscure the record kept by the blockchain, to help its destructive cyber activities and financial fraud of stolen cryptocurrency, according to the department.

Cryptocurrency mixers, sometimes known as tumblers, can assist hide the source of payments. If you place one crypto coin in the tumbler that has to be obfuscated, the tumbler splits it up into several pieces, mixes them with other pure coins, and then disburses arbitrary amounts of the tumbling money to specified crypto wallets at irregular intervals.

As the Treasury Department points out, this type of service has completely legitimate use; for example, consumers may use it to obtain some appearance of secrecy when making bitcoin purchases. However, with the government keeping such a tight watch on crypto crimes, it’s beginning to seem like businesses must be extremely cautious over who’s money they acquire and squander.

The agency’s Secretary of the Terrorism Unit said in a statement that this is the first time the agency has gone after a crypto mixing platform in its history. According to him, the nation is still exploring for ways to apprehend the perpetrators. He also stated that the organization will not permit them, as well as the platforms that assisted them, to operate without complying with the law.

The wallets utilized in these actions are also available on the agency’s SDN list. The Ronin breach is now one of the most discussed topic in the history of the cryptocurrency industry. Despite the fact that the hackers had already breached the network and stolen the monies, the network developers were only informed the next week.

After collecting over $150 million in the days following the attack, Sky Mavis, the blockchain game’s parent business, has proceeded to refund customers. Binance has stepped up to help the network hunt down and retrieve some of the cash.

According to the current sanctions, any Blender.io property owned in the United States or by Americans would be prohibited. If either of the barred persons owns over 50% of a company, that company will be blocked as well. The penalties also ban U.S. citizens from transacting with the prohibited individuals. In October 2021, the Treasury issued a 28-page paper on sanctions compliance instructions for the cryptocurrency industry.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Jai Hamid

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