The US Treasury has reportedly blacklisted more crypto adHodlnaut, a cryptocurrency lending platform, suspends deposits and withdrawalsdresses. Over 40 cryptocurrency wallet addresses were added to the OFAC sanctions list after being linked to Tornado Cash (Office of Foreign Asset Control).
Tornado Cash, however, is a well-known crypto mixer linked to numerous fraud schemes. In fact, this isn’t the first time the US has banned cryptocurrency wallet addresses.
Addresses for Ethereum and USD Coin Wallets Blocked by US Treasury
On August 8th, the OFAC declared that it has blocked access to the cryptocurrency mixer Tornado Cash within the United States. Furthermore, 44 ETH and USDC addresses associated with the mixer were blacklisted.
They are now on the government’s list of SDNs. Since 2019, fraudsters have exploited the site to steal almost $7 billion, the agency claims.
One such sum is the $455 million that the Lazarus Group is accused of stealing from North Korea. Con artists also exploited the service to hack into the DeFi system.
The Wormhole platform was attacked in February, resulting in a $375 million loss. Furthermore, in June, hackers stole almost $100 million in an attack on the Horizon Bridge.
Secretary of State for Terrorism and Financial Intelligence Brian Nelson made the following statement:
At the same time, Tornado Cash has publicly promised to fix the problem on multiple occasions. It has not, however, implemented a control that effectively prevents money laundering through fradulent sources. As a result, con artists regularly utilize it as a means of siphoning off fraudulently obtained funds.
Sanctions Against Cryptocurrency Mixers Are Still Being Issued By OFAC
In addition, Nelson stated that the agency would maintain its harsh penalties against cryptocurrency “mixers” that engage in cryptocurrency laundering. It will also target anyone who aids the criminals.
In addition, the US Department took action in May against yet another cryptocurrency mixing platform, Blender.io. According to the OFAC, Blender.io was responsible for processing more than $20.50 million of the $620 million stolen from the Ronin Bridge.
This is equivalent to around $25,000,000 USD or 173,600 ETH. As per its sanctions, the agency has frozen the accounts of both individuals and businesses. In addition, it forbids those living in the United States from utilizing them.
Tornado Cash said last month that it is striving for full openness and decentralization. It has done this by releasing the source code for its user interface to the public.
In addition, a compliance tool has been included on the Tornado Cash website. All crypto transactions and their origins may be traced using this handy tool. Seemingly, the platform’s efforts were fruitless.
