The United States government has lifted sanctions on Tornado Cash, a crypto mixing service previously accused of being involved in money laundering operations linked to North Korea.Â
The U.S. Treasury had imposed these sanctions after alleging that the platform helped hackers steal $7 billion in cryptocurrency.
Tornado Cash was said to have facilitated the laundering of stolen crypto, which North Korea allegedly used to fund its nuclear weapons program.
The removal of sanctions follows a legal case involving Tornado Cash. The U.S. Treasury explained that it decided to delist the platform after reviewing the situation.
Under sanctions, U.S. citizens and businesses were prohibited from engaging in transactions with Tornado Cash, as interacting with any sanctioned entity is considered illegal.
Crypto mixers like Tornado Cash operate by blending different users’ cryptocurrency funds to make their origins harder to trace.
While these mixers are often used to protect privacy, they can also be exploited by hackers or criminals seeking to hide stolen or illicit funds.
In 2022, Tornado Cash faced accusations of laundering crypto stolen during cyberattacks allegedly carried out by North Korean hackers.
This escalated in 2023 when two of the platform’s founders were charged in New York with conspiracy to launder money and violating sanctions.
Despite the sanctions being lifted, the U.S. Treasury has expressed ongoing concerns about the threat posed by North Korean cyber activities.
The North Korean regime has long been accused of targeting cryptocurrency platforms as part of efforts to secure funding for its military programs.
