Atomic Wallet hacker sends crypto to mixer used by Lazarus Group: Elliptic

[_act_]

Jollygood talked about the Lazarus Group  on a thread: After Chipmixer, Is Sinbad.io Next To Be Shutdown?

The mixer is Sinbad. We all know the mixer call Sinbad.

Elliptic is a blockchain compliance analytics firm that investigate about the $35 million that was known to have been stolen from Atomic wallet user. The money or probably some of the money was first convert to bitcoin and sent to Sinbad for mixing.

https://cointelegraph.com/news/atomic-wallet-hacker-sends-crypto-mixer-elliptic

On June 5, blockchain compliance analytics firm Elliptic reported that its Investigations Team has traced funds from the $35 million Atomic Wallet hack to crypto mixer Sinbad.io.

It claims the mixing service was previously used to launder more than $100 million in crypto assets stolen by North Korea’s Lazarus Group.

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[Latviand]

Seems to me that it's going to be a bad day for Sinbad.io and the people that's promoting them with campaign signatures. But I guess, if it hits a rogue nation's hacker group that provides funds for the rogue state, the sacrifice is hopefully worth it. I'm having mixed feelings with mixers now, I think that it's a freedom to be able to use it but then group's like the Lazarus group using it makes me want to change sides.

[Yamane_Keto]

On June 5, blockchain compliance analytics firm Elliptic reported that its Investigations Team has traced funds from the $35 million Atomic Wallet hack to crypto mixer Sinbad.io.

It claims the mixing service was previously used to launder more than $100 million in crypto assets stolen by North Korea’s Lazarus Group.

Sorry for the stupid question, but how did they manage to determine that this money went to the blender? I remember when I read about the reason for the confiscation of Khaled, they had told that money went to that mixer, but how could they determine the mixer to which those money went?

There is a lawsuit against Blender due to which that mixer stopped and Sanctioned Mixer Blender Re-Launched as Sinbad so we will see that soon.
If they are from North Korea, the United States will not be able to sized the domain, and therefore whenever suspicions revolve around them, all they will do is move to a new domain name.

Wallets of Blender.io on the Bitcoin and Ethereum blockchains were put on a U.S. sanctions list in May 2022 after it turned out North Korean hacker group Lazarus used the service to launder cybercrime proceeds. The U.S. Treasury Department said Lazarus was behind the infamous Ronin hack, when $625 million worth of crypto was stolen from a blockchain bridge protocol used by the popular non-fungible token NFT game Axie Infinity.

I've read their report here and can't find solid evidence on how to know the coins were sent to that mixer.

https://hub.elliptic.co/analysis/has-a-sanctioned-bitcoin-mixer-been-resurrected-to-aid-north-korea-s-lazarus-group/

But I found this

Blender may have been motivated to re-brand in order to avoid sanctions, and OFAC could now seek to impose further sanctions on Sinbad. It may also have done so in order to gain trust from users, following Blender’s abrupt closure last year, and the disappearance of significant amounts of funds from the mixer.

[Bitcoin_Arena]

Elliptic is a blockchain compliance analytics firm that investigate about the $35 million that was known to have been stolen from Atomic wallet user. The money or probably some of the money was first convert to bitcoin and sent to Sinbad for mixing.

Good luck to the Atomic wallet team trying to recover the funds once they go through a mixer. Maybe they should look at the point of conversion of alts to Bitcoin that is, if they used any centralized exchange, but I doubt if those hackers were that dumb.

Seems to me that it's going to be a bad day for Sinbad.io and the people that's promoting them with campaign signatures.

Bad as in how?

I'm having mixed feelings with mixers now, I think that it's a freedom to be able to use it but then group's like the Lazarus group using it makes me want to change sides.

Then you should have mixed feelings about the dollar, the banks and all those Government back financial institutions because they have been used to launder money for decades by bad actors and in some cases the Governments just look the other side because it's "big" people within them that are involved

How are both situations any different?

[acroman08]

Seems to me that it's going to be a bad day for Sinbad.io and the people that's promoting them with campaign signatures.

Bad as in how?

he is probably thinking that Sinbad.io will suffer the same fate as Chipmixer, which will affect the signature campaign participants when the campaign closes(just like what happened to Chipmixer's campaign) because Sinbad.io is seized by the authorities.

anyway, I am curious, I haven't really read up on the atomic wallet hack, but how was it really hacked? I mean, did the hackers find a vulnerability in their system(or something) that gave them access to a bunch of atomic wallets or what?

[Ojima-ojo]

The question is, will the atomic wallet users get their money back because just a portion of that fund is traced to a mixer what about those that have been filtered into various other coins and currencies, I guest there is no form of insurance to cover this and is going to take a long time and process trying to get the mixed bitcoin back even if the mixers the hackers used is cracked down which is not something that can easily come by.

[Poker Player]

First, I believe that the appropriate board for this topic is not Reputation, but Service Discussion.

Seems to me that it's going to be a bad day for Sinbad.io and the people that's promoting them with campaign signatures.

Are there any mixers that will get rid of this? By their nature, apart from serving privacy-conscious people, mixers will also attract scammers who want to launder money. Or is there a mixer that is going to reject funds for mixing because they are "tainted"? I don't think so.

[Latviand]

Seems to me that it's going to be a bad day for Sinbad.io and the people that's promoting them with campaign signatures.

Bad as in how?

Didn't you read the article? It clearly said that Sinbad was involved in the laundering of millions of dollars for the hacker group. I don't see how it can be good for Sinbad.io this news is but you clearly know what you're talking about.

I'm having mixed feelings with mixers now, I think that it's a freedom to be able to use it but then group's like the Lazarus group using it makes me want to change sides.

Then you should have mixed feelings about the dollar, the banks and all those Government back financial institutions because they have been used to launder money for decades by bad actors and in some cases the Governments just look the other side because it's "big" people within them that are involved

How are both situations any different?

Why would I have a mixed feelings with the dollar? It's not the currency that I use although I know how influential it is to my local currency. The way I see it, they're difference is that there's a way to trace the dollar if it's laundered compared to a mixer. Don't act big just because I have mixed feelings about mixers by mentioning something unrelated to the topic.

[Bitcoin_Arena]

anyway, I am curious, I haven't really read up on the atomic wallet hack, but how was it really hacked? I mean, did the hackers find a vulnerability in their system(or something) that gave them access to a bunch of atomic wallets or what?

They keep dodging the bullet whenever they are asked about this, claiming that they are investigation, but the hack could be arsing from a vulnerability in the wallet software or perhaps an insider job.

The question is, will the atomic wallet users get their money back because just a portion of that fund is traced to a mixer what about those that have been filtered into various other coins and currencies, I guest there is no form of insurance to cover this and is going to take a long time and process trying to get the mixed bitcoin back even if the mixers the hackers used is cracked down which is not something that can easily come by.

They have 2 full paragraphs about this in their terms of service, and they are even in UPPER CASE  . It will be interesting to see how they will handle this issue.

7. Limitation of Liability
IN NO EVENT WILL ATOMIC WALLET BE LIABLE TO YOU FOR: ANY LOST PROFITS, REVENUE OR DATA, INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES, OR DAMAGES OR COSTS DUE TO LOSS OF PRODUCTION OR USE, BUSINESS INTERRUPTION, OR PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES ARISING OUT OF OR IN CONNECTION WITH THE SERVICES, WHETHER OR NOT ATOMIC WALLET HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND REGARDLESS OF THE THEORY OF LIABILITY ASSERTED, WHICH HAVE RESULTED FROM:

(I) YOUR USE OF, OR CONDUCT IN CONNECTION WITH, OUR SERVICES;
(II) ANY UNAUTHORIZED USE OF YOUR WALLET ADDRESS AND/OR PRIVATE KEY DUE TO YOUR FAILURE TO MAINTAIN THE CONFIDENTIALITY OF YOUR WALLET;
(III) ANY INTERRUPTION OR CESSATION OF TRANSMISSION TO OR FROM THE SERVICES; OR
 IV) ANY BUGS, VIRUSES, TROJAN HORSES, OR THE LIKE THAT ARE FOUND IN THE ATOMIC WALLET SOFTWARE OR THAT MAY BE TRANSMITTED TO OR THROUGH OUR SERVICES BY ANY THIRD PARTY (REGARDLESS OF THE SOURCE OF ORIGINATION).

8. Cap on Liability.
UNDER NO CIRCUMSTANCES WILL ATOMIC WALLET BE LIABLE TO YOU FOR DAMAGES ARISING OUT OF THE SERVICES EXCEEDING $50.

Didn't you read the article?

Of course i read it even before today, you think I am dumb enough to comment without reading?

It clearly said that Sinbad was involved in the laundering of millions of dollars for the hacker group.

This is why I exactly gave you the example of the dollar but looks like you don't even get any point. If Sinbad was involved in the laundering of millions of dollars for the hacker group. Then shouldn't you be crucifying your glorious financial institutions, fiat currencies as well that have "facilitated" money laundering for decades?

Besides, Bestmixer was seized, Bitblender stopped operation, Chipmixer was seized. Did any signature participant here die or suffer damages as a result?
You make it look like it's going to be some sort of dooms day, lol. I guess according to you, they must be shitting in their pants right now.

Why would I have a mixed feelings with the dollar? It's not the currency that I use although I know how influential it is to my local currency.

Bingo

The way I see it, they're difference is that there's a way to trace the dollar if it's laundered compared to a mixer.

The point is it has been used to launder money before, and it's still being used to this date. How do you think corrupt leaders, Rebels, terrorist move their money in and from fragile states to offshore accounts and Shell corporations?

Don't act big just because I have mixed feelings about mixers by mentioning something unrelated to the topic.

If you don't understand anything. There is no need to feel bad about it.

[Lucius]

OP, no offense, but you should stop reading third-rate news portals that produce clickbait headlines, and their whole story boils down to mere speculation involving some kind of blockchain-spying company. Does it even matter through which mixer those funds went through (if they did at all), and who says they didn't use some other mixer as well?

First, I believe that the appropriate board for this topic is not Reputation, but Service Discussion.
~snip~

The OP (as well as some others) obviously think that topics like this are appropriate for the Reputation board, although it would be more appropriate to post them elsewhere. Insinuations that some mixer laundered funds from this or that hack are completely meaningless, especially if we know that no mixer has a blacklist and does not limit coins that may come from suspicious sources or are connected to illegal activities.

[Bureau]

A close source wallet getting hacked! Don't you guys smell something wrong here. I am suspecting an insider hacking and something that I have already mentioned a few days back here. I am suspecting the owners of Atomic wallet and they need to be investigated. After this news the stolen funds cannot be recovered. Will Atomic wallet payback it's users or will they file for bankruptcy? We all need to wait and watch.

[suzanne5223]

Jollygood talked about the Lazarus Group  on a thread: After Chipmixer, Is Sinbad.io Next To Be Shutdown?

After reading the article, I believe there is indeed some connection between Sinbad crypto tumbler and Blender because they just shut down then which means they upgrade their mechanism in other to be invisible. However, I am curious about the confidence the creator of the crypto tumbler had when he said "he remains relatively confident about his own fate."
In the meantime, I see the crypto tumbler as the next to be shut down by the Feds.

[Zlantann]

OP, no offense, but you should stop reading third-rate news portals that produce clickbait headlines, and their whole story boils down to mere speculation involving some kind of blockchain-spying company. Does it even matter through which mixer those funds went through (if they did at all), and who says they didn't use some other mixer as well?

Some of this news are mere speculation and guesswork because the process of investigation is not clear or revealed. It could also be a smear campaign against a mixer just to give them a bad name and grab some portion of their market. The truth is no mixer is a saint because none of them will enquire where their client got the funds they want to mix. The government can sanction any mixer because they all offer the same service. We can only predict the mixer that the government will seize but we have to be patient to actually know the next.

[NotATether]

That's BS news. The lizardmen are going to abuse just about any mixer they can get their hands on in order to launder their money, so why should association with them mean that the mixers should get shutdown?

What about all the exchanges which enable the withdrawals to take place?

And the shadow Paypal accounts and other payment apps?

And the banks turning a blind eye to their deposits?

People should look at the whole picture, else we will soon live in a world where it would not be viewed as draconian to say something like "Linux enables privacy therefore it is only for criminals, because privacy = crime".  

[DaveF]

Meh, I guess once again it proves criminals are lazy even in the amount of millions it's just time and effort to make it anonymous instead of going through a centralized mixer or exchange.

As for being seized or shut down or anything else. Makes you wonder how long it would take. CM ran for years, so it might take that long. Or it could be weeks / days.

But, not something I would worry about either way. If it happens, then others will pop up to take their place.

-Dave

[owlcatz]

Meh, I guess once again it proves criminals are lazy even in the amount of millions it's just time and effort to make it anonymous instead of going through a centralized mixer or exchange.

As for being seized or shut down or anything else. Makes you wonder how long it would take. CM ran for years, so it might take that long. Or it could be weeks / days.

But, not something I would worry about either way. If it happens, then others will pop up to take their place.

-Dave

It won't be long. Feds can get other countries to do their bidding as well ofc.. The almighty dollar persists... But.. For how long is the real question? History says... well... should be ded already.

[Husires]

It depends on the mixer manager's fear and the extent of his feeling that the police may knock his door or initiate a lawsuit against him, or is in a country that can extradite wanted persons to the United States, all factors that may suddenly make the mixer owner decide to leave and stop providing the service The lagest Bitcoin mixer is about to stop working.

The question is, will the atomic wallet users get their money back because just a portion of that fund is traced to a mixer what about those that have been filtered into various other coins and currencies, I guest there is no form of insurance to cover this and is going to take a long time and process trying to get the mixed bitcoin back even if the mixers the hackers used is cracked down which is not something that can easily come by.

They have a large line in the terms of use that avoids the legal issue, so it is possible that one of the developers knew some backdoors and suddenly decided to collect the free money for his pocket. Here lies the danger of these closed-source wallets in the fact that you trust a developer who can withdraw your money and you cannot make any legally thing.

I don't like to say it but leaving your money in a CEX exchange may be better than using a closed source wallet.

[John Abraham]

OP, no offense, but you should stop reading third-rate news portals that produce clickbait headlines, and their whole story boils down to mere speculation involving some kind of blockchain-spying company. Does it even matter through which mixer those funds went through (if they did at all), and who says they didn't use some other mixer as well?

Oh wow. Do you consider Cointelegraph as a third-rate news portal? I used to read Coindesk, Cointelegraph and BitcoinMagazine for crypto news. It doesn't really matter what mixer is used by those hackers! But it matters for the Mixer platform. Believe it or not, The Governs rely on those reports and start an investigation. If the allegation is true that Sinbad is Blender.io, If the U.S. Treasury Department were able to seize Blender.io, wouldn't they will be able to seize Sinbad too? Nobody knows if those hackers used other mixers as well. But, You cannot blame a news portal for not knowing that. They just reported what they know so far.

The OP (as well as some others) obviously think that topics like this are appropriate for the Reputation board, although it would be more appropriate to post them elsewhere.

Maybe service discussion? Because both Mixer and Atomic Wallet are services. Maybe this could fit better in the Service discussion section. Or, you may want to suggest where it fits best!

Meh, I guess once again it proves criminals are lazy even in the amount of millions it's just time and effort to make it anonymous instead of going through a centralized mixer or exchange.

Huh? I thought only exchanges could be centralized. How the heck can a mixer be centralized?

[Lucius]

Oh wow. Do you consider Cointelegraph as a third-rate news portal?
~snip~

I think I was clear about that, and many others agreed with that as we fought against those who shill their links on this forum and were paid for it. Not only do they try to make a sensation out of every senseless news, but they built their reputation in a very dirty way. I put them on my blacklist a long time ago, although I don't expect others to do the same.

[examplens]

OP, _act_ if you follow this discussion that you started, you will see that almost everyone suggests that you move this topic from the reputation section to the service discussion. I'm not sure why you associate things like this with reputation, I guess because of signature campaigns. You should understand that any service does not exist to have its own signature campaign, but it is only part of its promotion.

I really don't know how many times we will return to the story about the responsibility of any mixer for the origin of the bitcoins that come to it.
Now I see the "confession" of a victim of the Atomic wallet hack, where he says that his wallet has been emptied, but the funds have not yet been transferred. Are they the same Lazarus Group hackers? What if those funds go through another mixer, how will we position ourselves in that case?
Will Cointelegraph and Elliptics make special analyses, or are such amounts of only 1BTC not interesting to them because they are not sensational enough?

My wallet was also drained. BTC hasn't moved since then. https://bitcoin.atomicwallet.io/tx/2b5fd8df9d34ac2cef238e415a590f66eaef7e6fbc7544a75b035f55d6f70214

source: https://twitter.com/Thomas_Hunter11/status/1666054742412345345?s=20