Article Author:
Associated Press
Fatima Hussein
WASHINGTON (AP) — The Treasury Department has sanctioned cryptocurrency mixer Tornado Cash.
The Department of the Treasury's Office of Foreign Assets Control said Tornado Cash's system was to launder more than $96 million from the Harmony blockchain bridge theft in June and the Nomad cryptocurrency robbery in August. said to have been used for
Mixing services combine various digital assets, including potentially illegally obtained funds and legally obtained funds, to allow illegal actors to mask the source of stolen funds. allow it to be hidden.
"Tornado Cash routinely launders money for malicious cyber attackers, without taking basic measures to address its risks. We have repeatedly failed to impose effective controls," says Brian Nelson. , Under Secretary of the Treasury for Terrorism and Financial Intelligence.
He said the authorities "will take aggressive action against mixers laundering cryptocurrencies for criminals and their supporters."
Monday's actions are the second-ever series of sanctions imposed on a digital currency blending company.
In May, the United States announced sanctions against North Korean digital currency mixing company Blender.io. Blender.io has been accused of helping sanctioned North Korean cyber hacking group Lazarus Group carry out a $620 million digital currency heist in March.
The new sanctions also point to the increased use of digital assets to perpetuate illegal activities by state actors and individuals.
Lawmakers and government officials has expressed concern about the use of cryptocurrencies to engage in illegal activities.
In March, President Joe Biden issued an executive order on digital assets, telling federal regulators It called for mitigating illicit financial and national security risks posed by the misuse of assets.
