Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn

Chainalysis: YoMix Emerges as Top Bitcoin Mixer After Tornado Cash, Sinbad Shutdowns

CryptopotatoCryptopotato2024/02/15 14:04
By:Chayanika DekaMore posts by this author

Sophisticated bad actors like the Lazarus Group adapted their money laundering strategy by turning to YoMix and by employing chain hopping via cross-chain bridges.

After sanctions were imposed on Tornado Cash and Sinbad was shut down following similar actions against the platform, Chainalysis revealed that YoMix, a Bitcoin mixer, has stepped in as an alternative.

Recent discoveries by the blockchain analysis firm show that a wallet linked to North Korean hacking operations received funds from YoMix, whereas it used to receive funds from Sinbad.

Lazarus Group Shifts Mixer Tactics

Sophisticated cybercriminal groups like Lazarus Group have adapted their mixer usage. Following the sanctioning of Tornado Cash , Sinbad emerged as the mixer of choice for North Korea-linked hackers in 2022. However, with Sinbad no longer accessible, YoMix, a Bitcoin-based mixer, has stepped in as a substitute.

YoMix experienced significant growth in 2023, with inflows increasing by more than five times throughout the year.

According to Chainalysis data shared with CryptoPotato, approximately one-third of all YoMix inflows originate from wallets associated with crypto hacks.

The surge in YoMix usage, coupled with its adoption by the Lazarus Group, demonstrated how sophisticated actors can adapt and find alternative obfuscation services when previously popular options are shut down.

In 2023, money laundering became less centralized at the deposit address level, even as it became slightly more concentrated at the service level. Deposit addresses resemble bank accounts and are associated with individual users on centralized services.

Chainalysis speculated that crypto criminals might have been “diversifying” their money laundering across multiple nested services or deposit addresses to evade detection by law enforcement and exchange compliance teams. Diversifying the activity across more addresses could also serve as a tactic to mitigate the consequences if any single deposit address is frozen due to suspicious activity.

Crypto Money Laundering Tactics Exposed

A big share of crypto money laundering activity involves relatively unsophisticated methods, with perpetrators often sending funds directly to exchanges.

For instance, the now-defunct iSpoof service, which facilitated over £100 million in fraudulent activity before being shut down by authorities, transferred millions in Bitcoin directly to a set of deposit addresses at a centralized exchange.

However, cybercriminals with more advanced on-chain laundering skills, such as the Lazarus Group, typically employ a wider range of crypto services and protocols, as noted by Chainalysis.

Besides YoMix, these illicit actors are increasingly utilizing cross-chain bridges.

In 2023, bridge protocols received a total of $743.8 million in crypto from illicit addresses, a significant increase from the $312.2 million recorded in 2022. Notably, North Korea-linked hackers have been prominent users of bridges for money laundering purposes.

You Might Also Like:

  • Edward Snowden Supports Legal Defense Fund for Tornado Cash Developers
  • CertiK Exposes the Underbelly of Fraud Targeting its Brand
  • Electric Capital Raises Alarm on Crypto Scams Targeting Entrepreneurs
Tags: Crypto Scams Tornado Cash
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Stake to earn
CEC, QTLX, GDV and other popular new coins are in hot progress!
Stake now!