Security News > 2023 > August > Tornado Cash Founders Charged in Billion-Dollar Crypto Laundering Scandal

The U.S. Justice Department on Wednesday unsealed an indictment against two founders of the now-sanctioned Tornado Cash cryptocurrency mixer service, charging them with laundering more than $1 billion in criminal proceeds.

Tornado Cash is estimated to have processed upwards of $7 billion worth of crypto assets over a period of three years.

In a related move, the U.S. Treasury Department's Office of Foreign Assets Control sanctioned Semenov and eight cryptocurrency addresses connected to him, days after a U.S. court ruled that Tornado Cash is a distinct entity that can be sanctioned.

Tornado Cash is said to have failed to implement effective Know Your Customer or anti-money laundering programs as required by law.

The development comes a year after the U.S. Treasury Department imposed sanctions against Tornado Cash, accusing the platform of providing "Material support" to the hacking crew and laundering more than $500 million stolen from hacks of Axie Infinity and Harmony Horizon Bridge last year.

In recent years, North Korea has become infamous for brazenly pulling off high-profile cryptocurrency heists, laundering the funds through mixing services like Tornado Cash and Sinbad, and funneling them back to the country to fund the regime's nuclear and missile development programs.

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https://thehackernews.com/2023/08/tornado-cash-founders-charged-in.html