Sunday, November 27, 2022
HomeETHUS government ceases use of Ethereum Mixer Tornado Cash to stop money...

US government ceases use of Ethereum Mixer Tornado Cash to stop money laundering and cybercrimes

Tornado Cash, a prominent cryptocurrency mixer, was blacklisted by the United States Department of Treasury on Monday. As a result, citizens of the United States are no longer allowed to use the site, as the government claims that it “launders the profits of cybercrimes.”

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,” Brian Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, said in a statement.

“Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors.” The purpose of crypto asset mixers is to conceal the origin of money by combining the tokens of one user with those of a group of other users who are also using the platform to store their assets. They go above and beyond the capabilities of typical crypto platforms by providing an additional layer of anonymity for the parties participating in transactions.

Tornado Cash is used by some individuals only for the purpose of legitimately protecting their privacy; nonetheless, the government asserts that its use facilitates illegal behaviour, namely “facilitation of heists, ransomware scams, fraud, and other cybercrimes.” The Department of the Treasury has said that “virtual currency mixers that enable criminals constitute a danger to the national security of the United States.” This year saw a number of high-profile crypto heists, including the theft of tokens worth $615 million from Ronin, a network that supported the non fungible token game Axie Infinity, and an attack on the United States startup Harmony that cost $100 million.

Read more at Cryptoshrypto:
Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

11 + one =

- Advertisment -

Most Popular