• The Department of Justice (DOJ) shut down Chip Mixer, a crypto tool designed to hide digital currency transactions and launder up to $3 billion in illicit funds.
• A Vietnamese operator of the tool was arrested and charged with money laundering, operating an unlicensed money transmitting business, and identity theft.
• This is not the first time the U.S. has targeted a foreign mixer – previously Tornado Cash, utilized by North Korea agents, had sanctions issued against it.
Chip Mixer Shut Down
The Department of Justice (DOJ) has taken action to shut down Chip Mixer – a crypto tool designed to hide digital currency transactions and potentially launder up to $3 billion in illicit funds. Two sites associated with this product were also disabled.
A Vietnamese operator of the tool was arrested and charged with money laundering, operating an unlicensed money transmitting business, and identity theft among other things. According to Jacqueline Maguire of the FBI Philadelphia Field Office: “Criminals have long sought to launder the proceeds of their illegal activity through various means” but technology now makes this easier than ever before with services like Chip Mixer being used on a global scale.
This is not the first time that sanctions have been issued against foreign mixers either – previously Tornado Cash had sanctions imposed upon it for its use by North Korea agents for laundering around $7 billion in crypto assets..
Mixers Pose Dangers
Mixers can be very dangerous as they are built to hide digital assets from law enforcement agencies making it hard for victims to trace stolen funds should cyberthieves or other illicit actors seek out their services – leaving them at risk of losing 90% of their money.
In conclusion, authorities have put an end to Chip Mixers operations while arresting its operator in connection with various crimes related to financial fraud and money laundering schemes using cryptocurrency tools. This serves as another reminder that such activities pose serious dangers when it comes to digital asset security measures taken by criminals or state-sponsored actors alike