Platforms for transacting virtual currencies combine various digital assets, including funds obtained illegally or legitimately, so that illegal actors can hide the origin of stolen funds.
“Tornado Cash has repeatedly failed to enforce effective controls designed to prevent the laundering of funds from malicious cyber actors on a regular basis and without basic measures to address its risks.”, explained Brian Nelson, assistant secretary for terrorism and financial intelligence at the Treasury Department.
He said the agency “will continue to aggressively pursue action against mixers who launder virtual currency for criminals and those who assist them.”
This is the second series of sanctions imposed against a company for transacting with digital currencies. In May, the United States announced sanctions against the North Korean firm Blender.io, accused of helping the Lazarus Group, a sanctioned North Korean hacker group, carry out a $620 million digital currency heist in March.
The new sanctions also point to the growing use of digital assets to perpetuate illegal acts by state actors and individuals.
US lawmakers and officials have raised concerns about the use of cryptocurrencies to engage in illicit acts.
In March, President Joe Biden issued an executive order on digital assets asking federal regulators for support in mitigating the illicit finance and national security risks posed by the misuse of digital assets.
Source: Ambito
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