THE DAILY ENCRYPT

September 25, 2022

The Federal Reserve have Banned ETH Mixing Tool Tornado in The US

Today, the U.S. Treasury Department placed the Ethereum mixing service on its Specially Designated Nationals List....
Round Gold-colored Ethereum Coin
Photo by Moose Photos

Today, the U.S. Treasury Department placed the Ethereum mixing service on its Specially Designated Nationals List. Today, the U.S. Treasury Department approved Tornado Cash as an Ethereum mixing tool.

The body announced Monday that it had added Tornado Cash and a long list Ethereum addresses to its Specially Designated Nationals List. This bans American citizens from using the tool, or transacting with these addresses.

Tornado Cash allows users to make private transactions on Ethereum. It works by pooling cryptocurrency from many users and mixing them together to obscure transactions.

According to the Treasury Department’s announcement, there were a few Ethereum addresses that are linked to Tornado Cash. These addresses also include addresses where funds could be donated. Andrew Thurman from Nansen says that the list of banned addresses includes Gitcoin’s address, which is an Ethereum-based crowdfunding platform for open-source projects.

Related Articles:  South Korea Rake in $184M in 2 Years From Crypto Taxes

According to the Treasury Department, these measures were taken because criminals used Tornado Cash as a means of laundering money. The statement stated that the U.S. Department of the Treasury’s Office of Foreign Assets Control had sanctioned Tornado Cash, a virtual currency mixer, for laundering more than $7 billion in virtual currency since its creation.

An announcement stated that Lazarus Group was a North Korean state-sponsored hacking organization and used Tornado Cash in order to launder more than $96 million. It had hacked Harmony Bridge back in June.

It was also reported that Tornado Cash was used by criminals to conceal $7.8million stolen from last Wednesday’s Nomad Bridge hack.

Related Articles:  Canadian Crypto Mining Firm Bitfarms Opens 10th Mining Operation in Argentina

Tornado Cash stated April that it used a tool by Chainalysis, a blockchain tracking firm, to block addresses from accessing the privacy app sanctioned in the U.S.

The U.S. authorities didn’t find this satisfactory. Brian E. Nelson, Under Secretary of Treasury for Terrorism and Financial Intelligence, said: “Despite public assurances to the contrary, Tornado Cash repeatedly failed to impose effective control measures designed to prevent it from laundering funds for malignant cyber actors on an ongoing basis and without basic steps to address its risks.”

Ethereum is the network behind second-largest cryptocurrency market cap. It also hosts thousands of tokens. Its native cryptocurrency, ETH, trades at just $1,800 with a market cap exceeding $219 billion.

Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".
Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Latest News
PRESS RELEASES