US Treasury updates sanctions on Tornado Cash due to North Korea's nuclear weapons program.
The overhaul of the crypto mixer effectively replaces the actions taken by the US Treasury in August.
Amended sanctions against cryptocurrency mixer Tornado Cash.
In addition, two people involved in "transportation and procurement activities" for the Democratic People's Republic of Korea have been added to the list of Specially Designated Nationals.
The Treasury Department announced on November 8 that it had "delisted and simultaneously redesignated" Tornado Cash. In addition, taking into account the activities of North Korean residents Ri Sok and Yan Zhiyong in its sanctions basis. The government department reiterated its claims that the crypto mixer was involved in laundering $455 million in cryptocurrency stolen by the Lazarus Group, which is linked to North Korea.
Tornado Cash's redesignation basically duplicates Treasury's August actions against the crypto mixer, which established sanctions for its involvement in allowing destructive cyber activities that eventually help the DPRK's program. The Lazarus Group was included in the original sanctions, but no links to North Korea's nuclear program were established.
According to Brian Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence, “today's sanctions action targets two key nodes of the DPRK's weapons program: its heavy dependence on illegal acts, including cybercrime, to generate revenue, and its ability to acquire and transport goods in support of weapons of mass destruction and ballistic missile program.”
Many players in the cryptocurrency industry have filed lawsuits against the US Treasury in response to the mixer sanctions. In September, a group of investors backed by the US-based crypto exchange Coinbase filed a lawsuit, arguing that the Treasury's sanctions on 44 USD Coin and Ether addresses associated with Tornado Cash were not legal.
In October, the cryptocurrency advocacy group Coin Center filed a lawsuit against the government agency, claiming that the mixer was a privacy tool beyond anyone's control.
Read also: Binance CEO CZ buys FTX to ease liquidity crunch
