The European Union Agency for Law Enforcement Cooperation shut down the crypto mixer ChipMixer after suspecting it of money laundering. 1,909.4 BTC (~$47 million) was seized from the crypto mixer’s accounts.
Cryptocurrency mixer ChipMixer was shut down by Europol. According to the agency, the reason was that the crypto mixer was involved in laundering “illegal proceeds from criminal activities.”
The investigation against ChipMixer was initiated by the Federal Criminal Police Office of Germany together with the U.S. Department of Homeland Security, and the U.S. Department of Justice. The Central Cybercrime Bureau of Poland and the Cantonal Police of Zurich, Switzerland, were also directly involved in the investigation, while Europol was coordinated by the Belgian Federal Police.
Europol seized four servers hosting the crypto mixer’s app and 7 TB of data. The total amount of assets seized was 1,909.4 BTC (~$47 million).
The agency reported that the crypto mixer laundered 152,000 BTC (~$2.88 billion) over the past five years from illegal activities such as drug trafficking, arms trafficking, ransomware attacks, and payment card fraud. According to the U.S. Department of Justice, about $700 million was laundered through ChipMixer, stolen from the Ronin Network and Horizon Bridge attacks. ZachXBT reports that 360 BTC (~$5.9 million) of stolen money from the bankrupt FTX exchange was laundered through ChipMixer.
Immediately after ChipMixer was shut down and the funds seized, the U.S. Department of Justice filed charges against Minh Quốc Nguyễn, a resident of Hanoi, Vietnam, in connection with the operation of the crypto mixer. The U.S. Attorney’s Office for the Eastern District of Pennsylvania charges him with money laundering, operating an unlicensed money transmitting business, and identity theft.
Nguyễn was identified as the creator and operator of the online infrastructure used by ChipMixer. According to the indictment, he promoted ChipMixer online and advised customers on how to bypass KYC and AML. The U.S. Attorney’s Office also alleges that ChipMixer served U.S. customers without proper registration. If the charges are proven, Nguyễn will be sentenced to 40 years in prison.
ChipMixer isn’t the first crypto mixer to come under the crosshairs of regulators. In August 2022, the U.S. Office of Foreign Asset Control (OFAC) imposed sanctions on Tornado Cash, putting global pressure on the cryptocurrency industry. However, attackers continued to actively use the mixer.
