US Sanctions This Crypto Mixer For Laundering $7 Billion

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An office under the U.S. Department of the Treasury sanctioned crypto mixer Tornado Cash for laundering money worth billions. In an announcement made on Monday, the Office of Foreign Assets Control (OFAC) found activities of a U.S. sanctioned hacker group. The department accused Tornado Cash of laundering funds related to cybercrimes in the country. It described Tornado as a virtual currency mixer that launders the proceeds of cybercrimes.

One such example of a cyber crime was the $80 million exploit on DeFi exchange Fei Protocol earlier this year in April. After moving the funds in Wrapped Ethereum from the protocol to their personal wallet, teh perpetrators used Tornado Cash. Crypto mixers are designed to make transactions untraceable, making it tough to trace where exactly stolen funds are stored.

Tornado Cash Sanction By Foreign Assets Control Office

The OFAC said it sanctioned the crypto mixer for laundering more than $7 billion in crypto assets since its creation in 2019.

“”The money laundering” includes over $455 million stolen by the Lazarus Group, a Democratic People’s Republic of Korea (DPRK) state-sponsored hacking group that was sanctioned by the U.S. in 2019, in the largest known virtual currency heist to date.”

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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