U.S. lawmakers urge Treasury to respond on measures regarding Tornado Cash
7x24h News
U.S. lawmakers urge Treasury to respond on measures regarding Tornado Cash
According to Cointelegraph, several U.S. Democratic lawmakers have urged the Treasury Department to respond regarding its handling of the cryptocurrency mixing service Tornado Cash. Although Tornado Cash was sanctioned in 2022, it continues to operate. In a letter dated November 14, the lawmakers pointed out that despite the sanctions, Tornado Cash remains online and continues to function as a decentralized smart contract. Usage of the mixer has seen a "resurgence" this year, with Tornado Cash receiving $1.8 billion in deposits during the first half of 2024—45% more than the total for all of 2023. The lawmakers cited multiple instances of Tornado Cash providing mixing services to rogue nations, terrorist organizations, and cybercriminals. They requested that the Treasury provide estimates of illicit activity conducted through Tornado Cash since the sanctions, details on enforcement actions taken against users and exchanges using the service, and whether the department has considered potential secondary sanctions on non-U.S. persons or exchanges interacting with mixed funds. The lawmakers also asked for suspicious activity reports and related statistics, and inquired whether the Treasury possesses sufficient enforcement tools. They demanded responses and a staff briefing by December 2, 2024.
Navigating Web3 tides with focused insightsTechFlow news, on November 19, according to Cointelegraph, several U.S. Democratic lawmakers have urged the Treasury Department to respond regarding its measures on the cryptocurrency mixing service Tornado Cash, which was sanctioned in 2022 but continues to operate.
In a letter dated November 14, the lawmakers pointed out that despite sanctions, Tornado Cash remains online and continues to function as a decentralized smart contract. Usage of the mixer has seen a "resurgence" this year, with Tornado Cash receiving $1.8 billion in deposits during the first half of 2024—45% more than the total for all of 2023.
The lawmakers cited multiple examples of Tornado Cash providing mixing services to rogue nations, terrorist organizations, and cybercriminals. They requested that the Treasury provide estimates of illicit activity through Tornado Cash since the imposition of sanctions, details on enforcement actions taken against users and exchanges utilizing the service, and whether potential secondary sanctions on non-U.S. persons or exchanges interacting with mixed funds are being considered.
The lawmakers also asked for suspicious activity reports and related statistics, and questioned whether the Treasury has sufficient enforcement tools, requesting a response and staff briefing by December 2, 2024.
