The US Treasury Department updated its sanctions on Ethereum coin mixer Tornado Cash today, citing its engagement in activities relating to North Korea.
In August, the Feds issued a ban on the use of the mixer by US individuals, alleging that North Korean hackers were using it to launder illicit funds.
Role of Tornado Cash in North Korea weapons program
Tornado Cash was redesignated by the Office of Foreign Assets Control (OFAC) of the Department of the Treasury on Tuesday due to “its role in enabling malicious cyber activities, which ultimately support the DPRK’s [Democratic People’s Republic of Korea] WMD [weapons of mass destruction] program,” according to the announcement.
The department stated that it had “delisted and simultaneously redesignated” Tornado Cash, as well as considering the activity of North Korean citizens Ri Sok and Yan Zhiyong in its sanctions. It maintained its claims that the crypto mixer was involved in the laundering of $455 million in cryptocurrency stolen by the Lazarus Group, which is tied to North Korea.
Geopolitical tensions’ impact on crypto
The DPRK’s WMD program has resurfaced after it began testing missiles, including one over Japan last month. For decades, a number of countries have sanctioned the pariah state.
Tornado Cash is a cryptocurrency platform that allows users to anonymously transfer and receive Ethereum, the second-largest digital asset by market cap.