US Treasury Bans Tornado Cash For Supporting North Korea's Nuclear Program
Further restrictions on Tornado Cash were put in place by the US Treasury on November 9, 2022. Allegations that the North Korean government is using it led to this decision. The report stated that that North Korea is employing it specifically to support their WMD Program (Weapons of Mass Destruction). The US government previously prohibited public users from utilizing Tornado Cash as a platform earlier in August 2022. They added that it was being utilized by crooks to launder dirty money.
What transpired to Tornado Cash then? North Korea reportedly used Tornado Cash to launder over $100 million in cryptocurrency, according to a press statement by the US Treasury. The funds are used to support their development of ballistic missiles as part of their WMD program. In a news release, they claimed:
"This action is part of the United States' ongoing efforts to contain the DPRK's ability to advance its unlawful weapons of mass destruction (WMD) and ballistic missile initiatives that threaten peace in the region," the statement reads. "This action follows numerous recent DPRK ballistic missile launches, which are obviously in violation of numerous United Nations (U.N.) Security Council rulings."
The investigation also stated that Tornado Cash facilitates unlawful online activity, ultimately funding North Korea's development of weapons. Additionally, the US Treasury estimates that since 2019, close to $1.5 billion in illicit funds have been laundered. This includes the "Lazarus Group" of hackers sponsored by North Korea. The report claims that in March, Lazarus Group transferred $455 million worth of stolen cryptocurrency. After these things happened, the US Treasury formally sanctioned Tornado Cash.
Lastly, the US Treasury warns international financial institutions to exercise caution. Any institution that willfully facilitates a sizable transaction or offers major financial services to companies that have been sanctioned may experience consequences from the US.
Architecto sed dolor laboriosam magnam rerum quia quaerat voluptatum. Id omnis suscipit odit nihil ut veniam. Quo quae ut ut modi sint molestias voluptatibus id. Tenetur itaque qui reprehenderit voluptates velit facilis dolores at. Omnis quisquam eos sequi et voluptatem. In quas in qui placeat quasi. Vel maiores corrupti et.
Culpa tempore eum error non optio consequatur. Porro ut qui et placeat voluptatem vitae est. Odio optio quae maiores consequuntur illum. Vel nesciunt tempora expedita illum neque. Labore voluptates et ut adipisci similique.
Ut impedit sed similique voluptate. Ut id enim reprehenderit autem. Sed quis dolores molestiae consequuntur architecto. Est aut laudantium adipisci quia inventore et laboriosam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...