Cryptos news: Chipmixer, the platform that laundered over $3 billion in cryptos, has been shut down

Chipmixer was a crypto-mixing platform that launched in 2017 and is believed to have laundered over $3 billion, mostly from cybercriminals.

On 15 March, German and US authorities shut down the platform's infrastructure for its alleged involvement in money laundering activities and seized four servers, approximately 1909.4 bitcoins in 55 transactions and 7 TB of data.

"Ransomware actors such as Zeppelin, SunCrypt, Mamba, Dharma or Lockbit have also used this service to launder ransom payments they have received. Authorities are also investigating the possibility that some of the crypto assets stolen after the bankruptcy of a large crypto exchange in 2022 were laundered via ChipMixer."

Some of its clients include the North Korean hacking group that stole more than $600 million from blockchain app Axie Infinity, as well as thieves who drained millions from now-shuttered crypto exchange FTX . The DOJ also charged Minh Quốc Nguyễn, the service's owner, with money laundering, identity theft and operating an unlicensed money transfer business.

According to the complaint, Nguyn established and ran the internet platform used by ChipMixer beginning in August 2017 and advertised ChipMixer's services online. Nguyen employed identity fraud, pseudonyms, and anonymous email services to register domain names, obtain hosting, and pay for the services required to run ChipMixer. Nguyen actively mocked efforts to stop money laundering in online posts, claiming that "AML/KYC is a sellout to the banks and governments," pleading with clients to "please do not utilize AML/KYC exchanges," and showing them how to use ChipMixer to avoid reporting requirements.

After its demise, chipmixer leaves a large market place available and as crime is constantly evolving and demand is growing, a new chipmixer may appear.