The US OFAC has now imposed sanctions on Tornado Cash

One of the most well-known cryptocurrency mixing platforms in the world, Tornado Cash, has received approval from the US Treasury Department.

According to the sanctions, the government has forbidden the crypto mixer from providing any kind of transaction to people in the United States.

The Office of Foreign Assets Control of the Department of the Treasury is also expected to receive a report on any platform assets that may be located in the US or controlled by US people (OFAC). The Treasury Department asserted that the platform has continued to promote money laundering for hacker groups like the Lazarus Group, which is supported by the North Korean government, necessitating the penalties.

Since its debut in 2019, Tornado Cash has reportedly processed up to $7 billion, according to the Treasury Department. The Lazarus Group owns around $455 million of this total.

According to Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson, "Today, Treasury is penalizing Tornado Cash, a virtual currency mixer that launders the profits of cybercrimes, including those conducted against victims in the United States." "Despite pledges to the public to the contrary, Tornado Cash has frequently failed to enact adequate controls intended to prevent it from regularly laundering money for harmful cyber actors and without taking the bare minimum precautions to address its dangers. Treasury will keep up its tough enforcement against individuals who help criminals launder virtual currency through mixers.

Crypto Mixers have remained one of the most crucial channels for hackers to launder their money. The platforms receive the payments without confirming their source and combine them in a way that obscures who the ultimate beneficiaries would be.

The Treasury Department has turned to sanctions even though transaction money technologies from intelligence organizations like Chainalysis are not yet sophisticated enough to catch such funds movement. Blender.io was likewise subject to same sanctions back in May of this year.