US Treasury suspects Tornado Cash of funding North Korea's nuclear program

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Office of Controlforeign assets (OFAC) updated sanctions on cryptocurrency mixer Tornado Cash, saying it financed North Korea's nuclear program.

A division of the Treasury Department, OFAC, claims thatTornado Cash supported the creation of weapons of mass destruction in the DPRK with money received from services provided to hacker groups and individuals outside the United States. Thus, the resource not only violated the law on regulation of digital assets, but also American sanctions.

Persons laundering money through a mixer foroutside the United States, the regulator insists, they could directly or indirectly participate in hostile activities directed against Americans. The agency warned that founders, developers, DAO members or users may be subject to secondary sanctions for collaborating with Tornado Cash. OFAC did not specify what additional restrictions may be imposed on individuals or companies.

One of the most popular mixers in SeptemberETH Tornado Cash was sanctioned by the US Treasury Department because the platform was used by hackers to launder money stolen from crypto exchanges.