US lifts sanctions on Tornado Cash, a crypto mixer linked to North Korean money laundering

The U.S. Treasury has decided to lift sanctions on Tornado Cash, a crypto mixer previously accused of laundering $7 billion in stolen crypto by North Korean hackers.

In a recent statement, the Treasury mentioned that they have chosen to remove Tornado Cash from the sanctions list after a legal dispute. Sanctions prohibit Americans and U.S. businesses from engaging in any transactions with the sanctioned entity.

Crypto mixers like Tornado Cash provide a way for users to obscure the origins of their crypto, including funds obtained through illicit means, by mixing them with other crypto assets.

Back in 2022, the Treasury accused Tornado Cash of being involved in laundering stolen crypto from North Korean hacks, which are believed to be funding the country’s nuclear weapons program. In August 2023, the founders of Tornado Cash were charged in a New York federal court for money laundering conspiracy and violating sanctions.

Despite removing Tornado Cash from the list, the Treasury remains vigilant about the ongoing threat of crypto hacks orchestrated by North Korea.