Security News > 2023 > August > US charges founders of Tornado Cash mixer used by Lazarus hackers
The U.S. Justice Department charged two Tornado Cash founders with helping criminals, including the notorious North Korean Lazarus hacking group, launder over $1 billion worth of stolen cryptocurrency through their decentralized crypto mixing service.
Tornado Cash was also used to launder more than $96 million after the June Harmony Bridge hack and at least $7.8 million following the August Nomad Heist.
"The Tornado Cash founders' failure to establish an effective AML or KYC program for the Tornado Cash service facilitated its use by criminal actors laundering high volumes of criminal proceeds," the indictment reads.
"Because the Tornado Cash service provided its customers with a method to engage in transactions and move funds on the Ethereum blockchain in ways that could not be traced on the public blockchain, not all of the funds passing through the Tornado Cash service can be attributed to particular actors."
On Tuesday, the FBI said the Lazarus hacking group is likely preparing to cash out around $41 million worth of stolen cryptocurrency out of hundreds of millions stolen since the start of 2023.
FBI: Lazarus hackers readying to cash out $41 million in stolen crypto.