The US Department of Treasury has reportedly added additional ETH addresses to its suspension list. The government put over 40 crypto wallet addresses allegedly associated to Tornado Cash to the OFAC’s sanctioned list (Office of Foreign Asset Control).
Meanwhile, Tornado Cash is a well-known crypto mixer who is involved in a variety of crypto frauds. This is not the first time the United States has sanctioned cryptocurrency wallet addresses.
The US Treasury Department has sanctioned Ethereum and USDC wallet addresses.
The OFAC declared on August 8th that it had barred American individuals from utilizing the cryptocurrency mixer Tornado Cash. It also blocked 44 ETH and USDC addresses associated with the mixer.
They were added to the institution’s list of Specifically Equipped Nationals. Since 2019, fraudulent groups and individuals have used the site to steal nearly $7 billion, according to the government.
This includes the $455 million reportedly taken by North Korea’s Lazarus Group. In addition, scammers used the site to carry out several DeFi attacks and hacks.
Other attacks include the February attack on the Wormhole platform, which resulted in a $375 million loss. There was also the June Horizon Bridge incident, in which hackers stole more than $100 million.
According to Brian Nelson, the Secretary of Terrorism and Financial Intelligence,
“Meanwhile, Tornado Cash has made repeated public pledges that the problem will be resolved. However, it has not implemented an adequate check to prevent fradusters from laundering stolen funds. As a result, criminals continue to use its platform on a daily basis to drain fraud proceeds.”
OFAC Sanctions Against Crypto Mixers Continue
Nelson also stated that the agency would maintain its severe fines against cryptocurrency mixers who launder cryptocurrency. It will also go against those who aid them in their crimes.
Furthermore, the US Department of Justice took action against another cryptocurrency mixer, Blender.io, in May. According to the OFAC, Blender.io handled over $20.5 million of the $620 million derived via the Ronin Bridge.
This equates to around 25 million USDC and 173,600 ETH. Individual and corporate assets have been frozen as a result of the agency’s actions. It also prohibits US citizens from utilizing them.
Tornado Cash claimed last month that it is moving toward ultimate disclosure and independence. As a byproduct, the code for its user interface is now open source.
In addition, the Tornado Cash website now includes a conformity tool. This tool enables users to see the origin of all cryptocurrency transactions. However, it looks that the platform’s efforts were futile.