Crypto Mixer Used by North Korea Slapped With US Sanctions

Tornado Cash, a popular cryptocurrency service that allows users to mask their transactions, was sanctioned by the US Treasury Department after North North Korean hackers relied on it to launder illicit gains, officials announced on Monday. The sanctions bar American companies and individuals from doing business with it. From a report: The platform facilitates anonymous transactions by mixing funds from different sources before transmitting them to the ultimate beneficiary. Tornado Cash has been used to launder more than $7 billion in virtual currency, a senior Treasury official said in a press conference. North Korea's Lazarus Group has laundered about $450 million through the service, according to the official. It was also used to launder more than $100 million in the June hack of the Harmony blockchain's Horizon Bridge, which allows crypto trading between other blockchains, the official said.

Described by administration officials as the go-to mixer for cyber criminals, Tornado Cash became the second such service targeted by the Treasury Department. In May, the agency issued sanctions against Blender.io, which was also allegedly used by North Korean hackers to launder illicit proceeds from hacking. Following the sanctions, it appears Blender.io is no longer operating, the official said. The action against Tornado is a 'watershed' moment and the Treasury's 'most significant action in the crypto space to date,' said Ari Redbord, head of legal and government affairs at TRM Labs, a blockchain analysis firm used by governments and financial institutions to fight fraud, money laundering and financial crime, in an email. 'This designation sends a message that the US government will not tolerate mixing services that cannot stop illicit actors from using their services.'

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