Authorities target crypto mixer ChipMixer
German and US authorities, supported by Europol, have targeted ChipMixer, a cryptocurrency mixer well-known in the cybercriminal underworld. The investigation was also supported by Belgium, Poland and Switzerland.
On 15 March, national authorities took down the infrastructure of the platform for its alleged involvement in money laundering activities and seized four servers, about 1909.4 Bitcoins in 55 transactions (approx. EUR 44.2 million) and 7 TB of data.
ChipMixer, an unlicensed cryptocurrency mixer set up in mid-2017, was specialised in mixing or cutting trails related to virtual currency assets.
The ChipMixer software blocked the blockchain trail of the funds, making it attractive for cybercriminals looking to launder illegal proceeds from criminal activities such as drug trafficking, weapons trafficking, ransomware attacks, and payment card fraud. Deposited funds would be turned into “chips” (small tokens with equivalent value), which were then mixed together – thereby anonymising all trails to where the initial funds originated.
A service available both on the clear and on the darkweb, ChipMixer offered full anonymity to their clients. This type of service is often used before criminals’ laundered crypto assets are redirected to cryptocurrency exchanges, some of which are also in the service of organised crime. At the end of the process, the ‘cleaned’ crypto can easily be exchanged into other cryptocurrencies or directly into FIAT currency though ATM or bank accounts.
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.
Europol facilitated the information exchange between national authorities and supported the coordination of the operation. Europol also provided analytical support linking available data to various criminal cases within and outside the EU, and supported the investigation through operational analysis, crypto tracing, and forensic analysis.