The US OFAC sanctions Tornado Cash for connections with the Lazarus Group

Tornado Cash

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• Crypto mixer will not be allowed for Americans
• Tornado Cash could have laundered around $7B in crypto funds since 2019, according to investigations

One of the most popular crypto mixers, Tornado Cash, entered the payroll of risky websites according to the OFAC. According to reports, the crypto platform contributed more than $7B in laundering in 2019 when it was its official launch. Likewise, the mixer is accused of supporting major virtual criminals who the department investigates.

Tornado Cash is a crypto-mixer that gained prominence among techies for its speed of transactions and promised security. However, after these OFAC accusations, the crypto company will likely lose prestige and will soon be closed.

Tornado Cash crypto mixer could be involved in Ronin theft

Tornado Cash

Investigations suggest that Tornado Cash could be one of those responsible for the robbery at Ronin, belonging to the Axie Infinity company, which occurred during the year. However, the finance department does not forget that Lazarus Group was the one who committed the hack, managing to extract around $600M between Ethereum and USDCoin tokens.

The US Department believes that the crypto-mixer is a danger to the nation, which is why it will not be available to its citizens. Likewise, USDC and Circle Pay payment processors blocked transactions to the crypto platform.

Among the people who gave their opinion on the sanction towards Tornado Cash is the CEO of the crypto platform Terra Luna, Kwon Do, who hinted that the decision does not make sense. In contrast, a virtual market fan under the moniker “Mounia” responded to the comment by saying that all criminals should pay.

Crypto-mixer for North Koreans

Tornado Cash

The accusations against Tornado Cash are linked to the latest virtual theft that has been perpetuated from North Korean territory, according to OFAC. This web platform claims to meet the goal of eliminating trace records between Blockchains to maintain confidentiality between transactions. However, some of their customers believe this technology is accurate and only try to avoid exposing the user’s personal information.

Something that should be taken into account is that two critical crypto-mixers, Noman and Harmony, have also been accused of stealing funds. Curiously, they have been linked to the Lazarus Group. This calls into question whether it is a strategy to stop crypto mixers or whether the accusation by the highest US authority is absolute.

What is known about Group Lazarus is that it has brought misfortune to the crypto market because it has generated the most thefts from its central base, which is presumed to be in North Korea. For now, it has not been possible to apprehend those involved in the Ronin theft, but the investigations continue to advance.

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Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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