US Treasury Department calls crypto mixers problem for sanctions

According to the agency’s employees, such services allow Russia, Iran, and the DPRK to circumvent the restrictions imposed

21.09.2022 - 08:15

515

2 min

What’s new? Assistant Secretary of the US Treasury Department Elizabeth Rosenberg has said that sanctions on cryptocurrency mixers will prevent money laundering from entities in Russia, Iran, and the DPRK. Cointelegraph reports this, citing the official’s speech at a hearing of the Senate Banking Committee.

News on the Cointelegraph website

What other statements were made? The hearing covered sanctions against Russia. According to Rosenberg, the US Treasury Department’s ban on mixers such as Blender.io or Tornado Cash could be an effective way to counter circumvention of restrictions. She also added that technologies that increase anonymity, such as mixers, do pose a concern to understanding the flow of illicit finance and combating it.

On September 8, crypto exchange Coinbase filed a lawsuit against the US Treasury over imposed sanctions against Tornado Cash. Coinbase’s chief legal officer said that the Treasury Department’s decision is improper and in itself sets “a dangerous precedent” and threatens user anonymity.

What is known about Tornado Cash? After the sanctions were imposed, many representatives of the crypto community spoke out against such measures. The CEO of cryptocurrency exchange Kraken Jesse Powell said that users “have a right to financial privacy.” Uniswap protocol founder Hayden Adams criticized the banning of the entire service because of the actions of individual attackers and called the precedent a threat to freedom of speech and privacy. The developers of Zcash also notedthat the authorities’ actions could negatively affect the civil liberties of Americans. Also, the crypto mixer and his team were supported by the founder of the Cardano network, Charles Hoskinson.

To find out what awaits DeFi projects after sanctions against Tornado Cash, see GetBlock Magazine’s article.

Author: