US imposes sanctions on cryptocurrency mixer that allegedly laundered over $7 billion | Engadget

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US imposes sanctions on cryptocurrency mixer that allegedly laundered over $7 billion | Engadget
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US sanctions cryptocurrency mixer that allegedly laundered over $7 billion

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.

Tornado Cash runs on the Ethereum blockchain. Officials said the mixer played a role in other large-scale thefts, including the Harmony Bridge heist from June and this month's Nomad attack . 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. 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.

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