Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Seven US Representatives Ask Treasury Secretary Janet Yellen Why Tornado Cash Remains Online Despite Sanctions

Seven US Representatives Ask Treasury Secretary Janet Yellen Why Tornado Cash Remains Online Despite Sanctions

Daily HodlDaily Hodl2024/11/19 16:00
By:by Conor Devitt

A handful of Democratic US Representatives are grilling Treasury Secretary Janet Yellen on the continued accessibility of Tornado Cash, an Ethereum ( ETH )-based coin mixing system that helps users conceal their digital assets.

The US  sanctioned the controversial project in 2022 for national security purposes, but seven members of the House of Representatives wrote to Yellen last week to request information about the mixer and its current use.

The group of lawmakers, which includes vocal anti-crypto critic Brad Sherman (D-California), says Tornado Cash has remained online and continued to function as decentralized smart contracts despite the sanctions.

“Tornado Cash’s U.S.-based website was pulled down, though its smart contracts can run indefinitely, and anyone can technically use Tornado Cash at any time. The user-friendly website made it easier to utilize the service, though ‘sophisticated’ users can still directly access its smart contracts, according to the Justice Department.

Cryptocurrency mixers present serious national security risks and are used by a variety of illicit actors, including North Korea, Hamas, and the Palestinian Islamic Jihad (PIJ). As the Treasury Department has noted, due to the pressure of U.S. and United Nations sanctions, North Korea has resorted to illicit activities, including cyber-enabled heists from cryptocurrency exchanges and financial institutions, to generate revenue for its unlawful weapons of mass destruction and ballistic missile programs. Since 2017, North Korean hackers have stolen more than $3.6 billion in cryptocurrency, according to UN sanctions experts.”

The legislators asked the Treasury Department to provide estimates of the level of illicit and legitimate activity that has been funneled through Tornado Cash since August 2022. They also ask whether the Treasury Department is taking action against individuals and/or crypto exchanges that accept mixed funds from the platform.

One of Tornado Cash’s founders, Roman Storm, was arrested last year and slapped with charges related to allegedly laundering $1 billion in criminal proceeds, including hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercriminal outfit.

Storm’s trial was recently pushed from December to April 2025.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X , Facebook and Telegram

Surf The Daily Hodl Mix

Generated Image: Midjourney

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

AI models master capabilities long before exhibiting them, research shows

Share link:In this post: Research has shown that AI models master capabilities long before they exhibit them. Researchers claim the models can internalize concepts long before exhibiting them. Researchers reveal different methods to reveal hidden capabilities.

Cryptopolitan2024/11/24 22:00

AI can be used to promote jobs, not be a replacement, says AWS vice president

Share link:In this post: AI will take over boring tasks, giving people more time to focus on creative and innovative work. Workers need to learn new skills to adapt to the growing use of AI. AI will work with humans to improve industries like customer service, healthcare, and more.

Cryptopolitan2024/11/24 22:00