Once again, North Korea and the United States are attacking each other’s throats in the name of crypto activity. This time around, the US appears to have imposed sanctions on North Korea-based crypto-mixer Tornado Cash, which at the time of writing was It was allegedly washed More than $7 billion in digital funds.
North Korea used the Tornado for the wrong reasons
North Korea has long been a subject of cryptocurrency speculation among North American regulators. The idea is that various North Korean hackers have worked long and hard to steal digital assets from exchanges and other trading platforms in the United States, as well as areas across Europe and Asia so that North Korea can fund its nuclear program.
The country needs ways to launder and clean money so that it does not cause any suspicion or arouse any dirty looks. For this reason, the nation has long used mixers designed to do this by “mixing” cryptocurrencies together.
The blender is not necessarily an illegal tool. Instead, it is something that puts cryptocurrency units collected through different mediums or sites into one batch and then distributes them to multiple wallets to make them more difficult to track. Most of the time, a mixer is used to hide one’s identity when privacy is very important. It does not always mean that the person using it is of no benefit to the user.
However, in the case of North Korea, one cannot help but ask a few questions when figuring out what officials are trying to do. Regulators say Tornado Cash launched three years ago in 2019. From there, it laundered mountains of dirty money including nearly half a billion dollars raised through Lazarus Group, arguably North Korea’s most famous hacking organization. .
In addition, it was allegedly used recently a few weeks ago to launder funds stolen from cryptocurrency firm Nomad, which allegedly lost about $200 million in a cyber attack. As a result, the United States is now imposing sanctions on Tornado Cash and everyone who takes advantage of its services.
In a statement, Brian Nelson, the Treasury Secretary for Terrorism and Financial Intelligence, said:
Despite public assurances to the contrary, Tornado Cash has repeatedly failed to enforce effective controls designed to prevent it from laundering money for malicious cyber actors on a regular basis and without taking basic measures to address their risks. The Treasury Department will continue to take serious action against stock exchange companies that launder virtual currency for criminals and those who assist them.
Things don’t work
To everyone’s surprise, Tornado Cash appears to comply with the sanctions in question by adding a screening tool to prevent funds from going to sanctioned wallets.
Despite this, organizations like the Lazarus Group are still able to bypass set regulations and keep their secrets.
#North #Korea #Cryptocurrency #Mixer #Tornado #Cash #imposed #United #States