Tornado Cash Blacklisted by U.S. Treasury Department on Allega | THE MARKET

Tornado Cash Blacklisted by U.S. Treasury Department on Allegations of Being National Security Threat - The Daily Hodl

The U.S. Treasury Department has banned American citizens from using popular coin mixing service Tornado Cash as it says the protocol poses risks to national security.

In a press release, the Treasury Department says its Office of Foreign Assets Control arm has sanctioned Tornado Cash which it claims has been used to launder more than $7 billion worth of cryptocurrency since its creation in 2019.

"Today, Treasury is sanctioning Tornado Cash, a virtual currency mixer that launders the proceeds of cybercrimes, including those committed against victims in the United States. Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks. Treasury will continue to aggressively pursue actions against mixers that launder virtual currency for criminals and those who assist them."

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