Sinbad.io mixer OFAC designation

Sinbad.io, a Bitcoin mixer, was designated by OFAC in November 2023 as the successor to Blender.io after its designation.

TL;DR

TL;DR: OFAC designated Sinbad.io in November 2023 for laundering cryptocurrency, treating it as the successor to the previously designated mixer Blender.io. Transacting with it exposes any party to strict-liability sanctions risk.

What happened

Sinbad.io operated as a Bitcoin mixing service that obscured the origin of funds by pooling and redistributing coins. OFAC designated it in November 2023, describing it as the successor to Blender.io, which OFAC had designated in 2022. The designation placed Sinbad.io on the SDN List, blocking US persons from transacting with it.

The violation cited

Mixers are designated when they are used to launder proceeds, including funds tied to state-sponsored actors. Once designated, a mixer becomes a blocked party, and any transaction with it is a violation under strict liability. Intent is not required, and civil penalties start at $356,000 per violation. The 50 Percent Rule also blocks entities 50% or more owned by a blocked person, so a successor operating the same service inherits the exposure.

The lesson

Successor services do not escape by rebranding; the designation follows the behavior. A screening check that inspects a counterparty address against 947 OFAC-listed crypto wallets in one call under 100 ms returns BLOCK for a designated mixer before any funds move. Clean counterparties return ALLOW. Payment rails such as x402, AP2, and ACP move money but do not screen, which is why the check must sit in front of the payment, not behind it.