Why was Blender.io designated?

OFAC designated Blender.io on May 6, 2022, because the Lazarus Group used it to launder $20.5M+ from the Axie Infinity hack. It was the first crypto mixer ever designated.

What is the difference between Blender.io and Tornado Cash?

Blender.io was a centralized mixer with a known operator. Tornado Cash was a decentralized, immutable smart contract protocol.

What should crypto businesses do about mixers?

Screen wallet histories for interaction with designated mixer addresses (Blender.io, Tornado Cash, Sinbad). Any wallet that has interacted with a designated mixer should be flagged.

Was Blender.io the first mixer sanctioned?

Yes. Blender.io was the first crypto mixer designated by OFAC on May 6, 2022. Tornado Cash followed in August 2022, and Sinbad in November 2023.

Blender.io OFAC designation case study (2022)

On May 6, 2022, OFAC designated Blender.io, making it the first crypto mixer ever sanctioned. The designation was under the DPRK sanctions program.

Background

Blender.io was a centralized crypto mixing service that allowed users to obscure the trail of Bitcoin transactions. Unlike Tornado Cash (which was decentralized), Blender.io had a known operator.

Why it was designated

OFAC designated Blender.io because it was used by the Lazarus Group (North Korea) to launder over $20.5 million from the $620 million Axie Infinity (Ronin Bridge) hack in March 2022. The mixer processed the stolen funds, breaking the on-chain trail.

Compliance implication

The Blender.io designation established that OFAC will designate mixing services used by sanctioned entities. Crypto businesses must screen for interaction with designated mixer addresses in customer wallet histories.

Detail	Value
Designation date	May 6, 2022
Program	DPRK (North Korea)
Amount laundered	$20.5M+ from Axie Infinity hack
Significance	First crypto mixer designation

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Frequently Asked Questions

Why was Blender.io designated?: OFAC designated Blender.io on May 6, 2022, because the Lazarus Group used it to launder $20.5M+ from the Axie Infinity hack. It was the first crypto mixer ever designated.
What is the difference between Blender.io and Tornado Cash?: Blender.io was a centralized mixer with a known operator. Tornado Cash was a decentralized, immutable smart contract protocol.
What should crypto businesses do about mixers?: Screen wallet histories for interaction with designated mixer addresses (Blender.io, Tornado Cash, Sinbad). Any wallet that has interacted with a designated mixer should be flagged.
Was Blender.io the first mixer sanctioned?: Yes. Blender.io was the first crypto mixer designated by OFAC on May 6, 2022. Tornado Cash followed in August 2022, and Sinbad in November 2023.