Police take down ChipMixer service tied to stolen crypto from FTX, Axie Infinity hacks
ChipMixer, a cryptocurrency mixing service with ties to the hacks targeting FTX and Axie Infinity, has been pulled offline by the FBI, Europol, and other international authorities. In a press release published Wednesday, the Justice Department says authorities seized $46 million worth of cryptocurrency along with the service’s domains and GitHub account.
Crypto mixing services like ChipMixer make it more difficult for third parties, such as law enforcement, to trace crypto transactions, as they funnel different payments into a single pool of crypto before splitting up each amount and sending them to designated recipients. According to law enforcement, unlike crypto services registered to operate in the US, it naturally didn’t collect identifying information about its users, either. According to the DOJ, ChipMixer laundered over $3 billion worth of cryptocurrency between 2017 and the present day.
“ChipMixer facilitated the laundering of cryptocurrency, specifically Bitcoin, on a vast international scale, abetting nefarious actors and criminals of all kinds in evading detection,” Jacqueline Romero, a US attorney for the Eastern District of Pennsylvania, says in a statement. “Platforms like ChipMixer, which are designed to conceal the sources and destinations of staggering amounts of criminal proceeds, undermine the public’s confidence in cryptocurrencies and blockchain technology.”