Unraveling the Controversy: US Lifts Tornado Cash Sanctions Amid North Korean Money Laundering Claims

U.S. Treasury Lifts Sanctions on Tornado Cash

U.S. Treasury officials have made a surprising move by lifting sanctions on Tornado Cash, a crypto mixer previously implicated in laundering $7 billion worth of cryptocurrency stolen by North Korean hackers. This decision comes after a legal battle where the Treasury stated it "exercised our discretion" to delist the mixer.

Crypto mixers like Tornado Cash are designed to help users conceal the origins of their cryptocurrency, including funds that may be tainted or illegal, by blending them with other crypto assets.

Background on Tornado Cash

In 2022, the Treasury accused the "notorious" Tornado Cash of facilitating the laundering of stolen crypto linked to North Korea's efforts to fund its nuclear weapons program. Later, in August 2023, the two founders of Tornado Cash faced criminal charges in a New York federal court for conspiracy to launder money and violations of sanctions.

Despite the delisting, the Treasury has expressed its deep concern about the ongoing threat posed by crypto hacks orchestrated by the North Korean regime.