The U.S. Treasury sanctioned Tornado Cash for its alleged role in cryptocurrency money laundering operations. On Tuesday, intervals of 0.1 Ether transactions began materializing from the smart contract to prominent figures such as Coinbase CEO Brian Armstrong and American television host Jimmy Fallon. The Treasury sanctioned the cryptocurrency mixer Tornado Cash on Tuesday.

It is not possible to trace the source of the transactions per Tornado Cash design. One individual or multiple individuals or entities could be involved in the operation. Due to sanctions, it is illegal for any U.S. persons and entities to interact with Tornado Cash’s smart contract addresses.

The consistency of the transactions indicate that the sender(s) may be starting a prank as to direct law enforcement attention to the recipient individuals. The Treasury sanctions require "willful" engagement with the blacklisted smart contract addresses as a precondition for possible criminal proceedings. Penalties for willful noncompliance can range from fines of $50,000 to $10,000,000 and 10 to 30 years imprisonment.

Tornado Cash was sanctioned for using illicit wallets to launder stolen crypto funds. Web3 development platforms Alchemy and joined stablecoin issuer Circle and programming depository vault GitHub in blacklisting the sanctioned Tornado Cash addresses. Tornado Cash attempted to address ongoing concerns that its platform was being used by malicious hackers.

Tornado Cash attempted to address concerns that its platform was being used by malicious hackers to launder stolen crypto funds by disabling illicit wallets from accessing the application. However, its co-founder, Roman Semenov said at the time that the instrument only blocks access to the decentralized application, or DApp, interface and not the underlying smart contract.
Posted by
Tap to Copy the Short Url to This Post: 
One-Stop Business News backed by Mark Cuban. Free to Use →