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Title: US imposes sanctions on cryptocurrency mixer that allegedly laundered over $7 billion Post by: HCK on August 09, 2022, 04:05:02 pm US imposes sanctions on cryptocurrency mixer that allegedly laundered over $7 billion
<p>The US is ramping up its efforts to crack down on shady cryptocurrency mixers (https://www.engadget.com/us-treasury-sanctions-virtual-currency-mixer-north-korea-203502517.html). The Treasury Department has imposed (https://home.treasury.gov/news/press-releases/jy0916) sanctions on Tornado Cash, a mixer that allegedly helped launder more than $7 billion in stolen crypto funds since its inception in 2019. Like a previous sanctions target, Blender, Tornado Cash is accused of "indiscriminately" helping thieves by hiding transaction details while failing to institute meaningful anti-laundering safeguards. North Korea's state-sponsored Lazarus Group (https://www.engadget.com/fbi-believes-north-korean-hacker-cell-behind-600-million-crypto-heist-190210513.html) hackers are believed to have funneled $455 million through the mixer.</p><p>The sanctions block transactions with or for the benefit of Tornado Cash-related individuals and entities, whether they're located in the US or controlled by Americans. Anyone who detects banned activity is required to inform the Treasury's Offices of Foreign Assets Control.</p><span id="end-legacy-contents"></span><p>Tornado Cash runs on the Ethereum blockchain. Officials said the mixer played a role in other large-scale thefts, including the Harmony Bridge heist (where it laundered $96 million) from June and this month's Nomad attack (involving "at least" $7.8 million).</p><p>The government has taken legal action against crypto mixers for years. Federal law enforcement charged an Ohio man in 2020 for running a darknet mixer that helped criminals launder $300 million (https://www.engadget.com/2020-02-13-man-charged-over-300-million-bitcoin-laundering.html). The Treasury only started sanctioning mixers when it blocked Blender this May, however. The US now believes criminal-friendly mixers are a national security threat, and hopes efforts like these will curb both terrorism as well as attempts to dodge conventional sanctions.</p> Source: US imposes sanctions on cryptocurrency mixer that allegedly laundered over $7 billion (https://www.engadget.com/us-treasury-tornado-cash-cryptocurrency-mixer-sanctions-170017864.html?src=rss) |