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U.S. Treasury removed sanctions against the crypto mixer service Tornado Cash
- The U.S. Treasury has decided to lift sanctions on the crypto mixer service Tornado Cash, which was accused of aiding North Korea's Lazarus Group in laundering illicit funds.
- The sanctions were imposed by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) in August 2022 due to Tornado Cash's involvement in money laundering activities.
- Tornado Cash was utilized by cybercriminals, including the Lazarus APT Group, to launder over $7 billion in virtual currency since its establishment in 2019.
- The Treasury removed the sanctions based on its review of legal and policy considerations concerning financial activities in evolving technological environments.
- Secretary of the Treasury Scott Bessent emphasized the importance of safeguarding the digital asset industry from misuse by illicit actors like North Korea.
- In addition to lifting sanctions on Tornado Cash, the U.S. Treasury also delisted over 100 Ethereum wallet addresses from the Specially Designated Nationals (SDN) list maintained by OFAC.
- The founders of Tornado Cash, Roman Storm and Roman Semenov, were charged with money laundering and violating economic emergency powers laws, potentially facing significant prison sentences.
- Recent reports suggest that Lazarus APT Group has resumed using Tornado Cash for money laundering operations, indicating ongoing challenges in combating illicit financial activities.
- Numerous individuals involved in facilitating money laundering through Tornado Cash have faced legal repercussions, with arrests and convictions highlighting law enforcement efforts against illicit financial flows.
- The case involving Tornado Cash underscores the importance of regulatory oversight and accountability in the cryptocurrency space to prevent misuse for criminal purposes and ensure financial safety.
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