• Chip Mixer, a crypto tool designed to hide where digital currencies have been garnered or who they’re being used by, has been shut down by the Department of Justice (DOJ).
• It is believed the tool allowed cyberthieves and assorted criminals to launder as much as $3 billion in illicit digital funds.
• The Vietnamese operator of the tool was arrested and charged with money laundering, operating an unlicensed money transmitting business, and identity theft among other things.
Chip Mixer Shut Down By DOJ
The Department of Justice (DOJ) has recently shut down Chip Mixer – a crypto tool designed to hide where digital currencies are obtained or who they’re being used by. It is believed that this tool allowed cyberthieves and assorted criminals to launder up to $3 billion in illicit digital funds.
Accusations Against Chip Mixer
The DOJ released a statement claiming that two sites associated with Chip Mixer were also shuttered along with the primary product itself. They accused it for having been involved in a variety of hacking schemes, crypto heists, frauds, and even ransomware attacks. Brian Nelson from the FBI’s Philadelphia Field Office commented on how technology has made it increasingly easy for criminals to launder proceeds from illegal activities on „a grand scale“.
Arrested Operator Charged With Money Laundering
In addition to shutting down the mixer itself, authorities arrested its operator – a Vietnamese citizen – who was charged with money laundering, operating an unlicensed money transmitting business, and identity theft among other offenses. Jacqueline Maguire from the FBI Philadelphia Field Office added that mixers can be particularly dangerous since they’re built to conceal digital assets from law enforcement agencies.
Precedent Set By U.S.
This is not the first time that U.S authorities have taken action against foreign mixers; not long ago they issued sanctions against Tornado Cash due to their involvement in helping North Korean agents launder around $7 billion worth of crypto assets.
Conclusion
This case serves as a reminder of how technology can make it easier for criminal activities like money laundering to go undetected without proper oversight from law enforcement agencies such as the DOJ or FBI