U.S. issues sanctions on Tornado Cash, virtual currency mixing firm linked to crypto hacks

The Treasury Department has imposed sanctions on virtual currency mixer Tornado Cash, which has allegedly helped to launder more than $7 billion worth of virtual currency since its creation in 2019

The Treasury Department has imposed sanctions on virtual currency mixer Tornado Cash, which has allegedly helped to launder more than $7 billion worth of virtual currency since its creation in 2019.

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Treasury’s Office of Foreign Assets Control says Tornado Cash's systems were used, among other things, to launder more than $96 million drawn from the June Harmony blockchain bridge theft and August Nomad crypto firm heist.

Mixing services combine various digital assets, including potentially illegally obtained funds and legitimately obtained funds, so that illegal actors can obscure the origin of the stolen funds.

Secretary of State Antony Blinken said in a statement that the U.S. "will continue to pursue actions against mixers laundering virtual currency for criminals and those who assist them.”

The new sanctions point to the growing use of digital assets to perpetuate illegal acts by state actors and individuals. Lawmakers and administration officials have voiced concerns about the use of cryptocurrency to engage in illicit acts.

“The United States will not hesitate to use its authorities against malicious cyber actors, to expose, disrupt, and promote accountability for perpetrators and enablers of criminal activities,” Blinken said.