Monday’s sanctions will prevent U.S. persons and persons under U.S. jurisdiction from using cryptocurrency mixers.
Cryptocurrency mixers take a large number of transactions and mix them before sending them to their final destination, making it difficult to track where the money came from and where it is going.
As part of Monday’s action, 44 cryptocurrency wallets linked to Tornado Cash were authorized by the US government. A Treasury Department official said Tornado Cash had previously been identified as an organization of concern, but it remains unclear where the organization is based and what individuals may be running it. It did not disclose whether there were any.
“Despite public guarantees, Tornado Cash is designed to prevent money laundering for malicious cyber attackers on a regular basis without basic measures to address the risks. “We have repeatedly failed to impose effective controls over the country,” Brian Nelson said in a statement. “The Treasury will continue to take aggressive action against mixers laundering cryptocurrencies for criminals and their supporters.”
Tornado Cash is one of the largest cryptocurrency mixers identified by the US government, according to Treasury officials. It’s his second time the Department of Justice has sanctioned such an entity.
In May, the Treasury Department sanctioned Blender.io, another cryptocurrency mixer, accusing North Korea of using it “to support malicious cyber activities and money laundering of stolen cryptocurrencies.” Stated.
Officials said they hope Monday’s sanctions will send a message to the private sector and partner countries to encourage them to formulate regulations when it comes to cryptocurrencies.