Tornado Cash Sanctioned by U.S Agency Over Money Laundering

Tornado Cash Sanctioned by U.S Agency Over Money Laundering
  • Tornado was defined as a virtual currency mixer used to launder cybercrime revenues.
  • The move went into effect on Monday, according to the US Department of Treasury.

Tornado Cash, a cryptocurrency mixer, has been sanctioned for money laundering by an agency within the Department of the Treasury of the United States. Foreign Assets Control (OFAC) said on Monday that it had discovered the actions of a US-sanctioned cyber gang, which it detailed in a release. Tornado Cash was charged by the government for laundering money for domestic cybercrimes. Tornado was defined as a virtual currency mixer used to launder cybercrime revenues.

Easy Way to Disguise After Heist

The move went into effect on Monday, according to the US Department of Treasury. To mask the origin of a transaction, corporations utilize coin mixers such as Tornado Cash, which is based on Ethereum.

Brian E. Nelson, the Treasury Department’s Under Secretary for Terrorism and Financial Intelligence stated:

“Today, Treasury is sanctioning Tornado Cash, a virtual currency mixer that launders the proceeds of cybercrimes, including those committed against victims in the United States. Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks. Treasury will continue to aggressively pursue actions against mixers that launder virtual currency for criminals and those who assist them.”

In addition to Blender, Tornado Cash is the second mixer to be sanctioned by the OFAC. After announcing that it will employ Chainalysis to ban addresses previously sanctioned by OFAC, Tornado Cash generated criticism. The protocol is often used by hackers who want to keep their activities under wraps after committing a crime. 

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Source: https://thenewscrypto.com/tornado-cash-sanctioned-by-u-s-agency-over-money-laundering/