Mixing Services and Sanctions

The designated-mixer record and what it means for agent payments.

Overview

OFAC has designated crypto mixing services since May 2022, placing their addresses on the sanctions list. Interacting with a designated mixer address is prohibited - including through code.

The record

ServiceDesignatedBasis
Blender.ioMay 2022First mixer designation; linked to North Korean cyber operations
Tornado CashAugust 2022Designated addresses incl. smart contracts
SinbadNovember 2023Primary money-laundering concern; Lazarus Group support

Why the precedent matters

The Tornado Cash action established that designated smart contracts are in scope - interaction is prohibited even when executed by code. For agents, that makes the wallet screen before every payment the minimum viable control.

The control

Designated mixer addresses are part of the 947-wallet dataset. Screen the destination before sign; if it matches a designated address, block and log.

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