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Ethereum-based mixer created by US Treasury toran cache (TORN) the first smart contract licensed by the US government Ban To prevent money laundering by North Korean criminals, on August 8
CommerceBlock Privacy Pioneer CEO Nicholas Gregory commented on the decision, saying: crypto slate Pointless when it comes to fighting cybercrime.
He said:
“The US government has determined that North Korean criminals are using this [Tornado Cash] We concluded that banning is valid because it is a smart contract. Even so, criminals will do what criminals do.
He continued:
A ban on Tornado Cash makes little sense, because after all, no one can prevent people from using other mixer smart contracts or forking existing smart contracts. It doesn’t interfere with your privacy.
What if someone outside the US mixed the money through Tornado and put it into Uniswap? Then get the “dirty” token from Uniswap. Did I just break US law?”
The U.S. Treasury Department announced the ban by posting a list of 39 Ethereum and 6 USDC addresses associated with Tornado Cash. The Office of Foreign Assets Control (OFAC) has also added 45 addresses to its Specially Designated Nationals and Blocked Persons (SDN) list. This ban applies to all American citizens and businesses.
Research firm CoinCenter release Issued a statement regarding the banning of Tornado Cash, expressing concern over the violation of the liberties of American citizens.
The statement argued that the sanctions were not against specific individuals or organizations, but against neutral technology. Like any technology, it can be used for good or evil. The statement said the sanctions would cover:
“All Americans who want to use this automated tool to protect their privacy while trading online with limited freedom without the benefit of due process.”
On the other hand, Gregory says the decision makes little sense because it doesn’t prevent crime or completely block privacy. He said:
A ban on Tornado Cash makes little sense, because after all, no one can prevent people from using other mixer smart contracts or forking existing smart contracts. It doesn’t interfere with privacy.”
He continued to emphasize the importance of this ban as it is the first smart contract to be banned by a government.
Crypto mixers like Tornado Cash offer extra privacy to crypto users who want to transfer funds. In its simplest sense, a mixer protocol collects funds, mixes them, and sends them to their respective recipient wallet addresses. You will not be able to match your sending and receiving addresses.
Enhanced privacy has always been highly praised, but this feature attracts cybercriminals.A recent study by Chainalysis found that crypto mixer usage hit an all-time high of $51.8 million in July 2022 It became clear.
So far, Tornado Cash is one of the most popular choices among hackers. Axie Infinity’s Ronin Bridge, North Korea’s Lazarus Group, and Inverse Finance, Beanstalk, and Deus DAO actors have been linked to Tornado Cash.
The Chainalysis report also shows that criminal gangs with known ties to North Korea laundered around $600 million using the crypto-mixer in the second quarter of 2022 alone.
A Treasury spokesperson said: coin desk The department said it was working with the FBI to investigate the Lazarus Group in April 2022. The spokesperson also hinted at upcoming sanctions that could include his Tornado Cash at the mixer.
A spokesperson said:
“[the Lazarus Group actors] There is a risk of US sanctions. This demonstrates the Treasury Department’s commitment to use all available authorities to thwart malicious cyber attackers and block ill-gotten criminal proceeds.
The spokesperson added:
“Anyone who knowingly, directly or indirectly, engages in money laundering, counterfeiting of goods or currency, smuggling of large amounts of cash, or drug trafficking in support of the North Korean government or officials or persons acting in mandatory There may be secondary sanctions requirements for or on behalf of that government.
