US shuts down crypto service ChipMixer linked to $3 billion in transactions

Ransomware groups, suspected North Korean hackers, dark net market users and sellers buying and selling stolen financial information used the site, which processed more than $3 billion in illegal transactions, according to the US Department of Justice. Bitcoin used by a Russian military intelligence unit to purchase hacking equipment also flowed through the site, according to the Justice Department.

As part of the operation, German police seized $46 million in cryptocurrency as well as the servers used to run the site, according to law enforcement.

Jacqueline C. Romero, US Attorney for the Eastern District of Pennsylvania, said in a statement: “Chipmixer facilitated the laundering of cryptocurrencies, particularly bitcoin, on a large international scale, helping to track down nefarious actors and criminals of all kinds.” Found.”

The service allegedly allowed criminals to obscure the source of the stolen cryptocurrency.

Prosecutors in Philadelphia charged Minh Quoc Nguyen, 49, of Vietnam, with money laundering in connection with operating the chipmixer. The Hanoi resident is accused of openly advertising identity theft and circumventing money-laundering controls.

A Justice Department spokesman said Nguyen is not in law enforcement custody. Bloomberg could not locate a Nguyen representative for comment.

The Chipmixer website currently displays an image that says it has been seized by the Federal Bureau of Investigation. That site includes a link to “report more information about Chipmixer and its operators”.

So-called mixing services have become the focus of authorities around the world. In August 2022, the cryptocurrency mixer Tornado Cash was approved by the US Treasury Department. Earlier that year, Blender.io was also affected by the ban.