A coalition of European law enforcement agencies coordinated by Europol announced Monday that it has shut down Cryptomixer, a cryptocurrency laundering service used heavily by cybercriminals.
A Long-Running Money-Laundering Operation
In a press release, Europol described Cryptomixer as “the platform of choice for cybercriminals seeking to launder illegal proceeds from a variety of criminal activities, such as drug trafficking, weapons trafficking, ransomware attacks, and payment card fraud.”
Since 2016, the service facilitated the laundering of more than €1.3 billion ($1.5 billion) worth of Bitcoin.
How Cryptomixer Hid Criminal Funds
Mixing services like Cryptomixer obscure the source and destination of cryptocurrency. Bitcoin’s public blockchain makes it possible for authorities and blockchain analytics firms such as Chainalysis and Elliptic to follow transactions, but mixers pool deposits, randomize wait times, and redistribute the tokens to new addresses, breaking the traceable trail.
Europol said Cryptomixer’s process “blocked the traceability of funds on the blockchain” and was used by ransomware groups, dark web markets, and underground forums. After laundering, the “cleaned” crypto could be converted into other digital assets or fiat currency via exchanges.
Seizures and Takedown Actions
Authorities seized €25 million ($29 million) in Bitcoin, three servers, 12 terabytes of data, and the service’s domain, cryptomixer.io, which now displays a law-enforcement seizure notice.
The takedown marks the latest enforcement action against crypto-laundering platforms. Services like Tornado Cash, ChipMixer, and others have also been shut down or sanctioned in recent years.
Featured image credits: Freepik
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