Crypto mixing service Tornado Cash blacklisted by Treasury Department for alleged use in laundering

Key Facts

The U.S. Department of Treasury on Monday sanctioned the popular cryptocurrency mixer Tornado Cash, banning Americans from using a service that the government said, “launders the proceeds of cybercrimes.”
“Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks,” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson said in a statement.
While Tornado Cash is used by some people just as a legitimate way to protect their privacy, the government says it fosters illicit activity, including “facilitation of heists, ransomware schemes, fraud, and other cybercrimes.”
Tornado was used in some high-profile crypto heists this year, including the $615 million theft of tokens from Ronin, a network supporting the nonfungible token game Axie Infinity, and a $100 million attack on U.S. startup Harmony.