Security News > 2022 > August > Virtual Currency Platform ‘Tornado Cash’ Accused of Aiding APTs

The U.S. government has slapped sanctions on virtual currency mixer Tornado Cash for laundering more than $7 billion in crypto cash derived from cybercriminal activity.

The U.S. Department of the Treasury's Office of Foreign Assets Control unveiled the action-which basically freezes all of the assets and business of Tornado Cash and prohibits anyone from doing business with the service-on Monday, citing a number of occasions that the service laundered crypto for hackers.

In addition to the hefty sum that prolific North Korean-based Lazarus has moved through the service, Tornado Cash also laundered more than $96 million of cybercriminal funds derived from the June 24 theft of cryptocurrency from the Horizon blockchain bridge from Harmony, and at least $7.8 million from an Aug. 2 attack that stole $190 million from the Nomad crypto firm, U.S. officials said.

The move to sanction Tornado Cash for Lazarus' activities on the exchange is an integral part of the White House's response to North Korea's use of cyber warfare against cryptocurrency exchanges to finance its missile program, a senior administration official said, according to a tweet from Politico cybersecurity reporter Eric Geller.

The sanctions against Tornado Cash come after its operators were warned about the illegal activity occurring on the exchange, which the feds have been monitoring, according to the Department of Treasury.

"Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks," Nelson said in a press statement.

News URL

https://threatpost.com/virtual-currency-platform-tornado-cash-accused-of-aiding-apts/180367/