The United States Treasury Department Outlaws the Crypto Mixer, Tornado Cash

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On August 8, the United States placed a ban on the Ethereum crypto mixer known as Tornado Cash. The ban which makes it illegal for US citizens to use their platforms is based on allegations of aiding cyber crimes. The US Treasury department claims that the platform is a haven for North Korean government-aided hackers and other criminals.

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Crypto mixers are platforms that offer a service of anonymity to crypto holders. They make it possible for them to make untraceable transactions. Although cryptocurrencies are not centralized financed, which can be traced in the case of money laundering, Transactions in cryptocurrencies can still be traced to the person who made them. This is where the crypto mixing platforms comes in handy for criminals. They make crypto transactions untraceable. What they do is that they act like middlemen between the givers of the coin and the receivers of the coin. They collect the coin, mix it with the pool of other coins they have then spew it out to the intended receiver of the coin.

hand touching button with AML anti money laundering symbol

Tornado Cash is the second crypto mixing platform to be sanctioned in the US this year. In early May of this year, the US outlawed Blender.io. They were alleged for encouraging perpetrators of malicious cyber activities and aiding a North Korean hacker group known as Lazarus.

 

 

 

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