The Department of Treasury reportedly stated that it has “delisted and simultaneously renamed” Tornado Cash while also considering the actions taken by North Korean citizens Ri Sok and Yan Zhiyong in order to comply with the restrictions.
According to Cointelegraph, the Office of Foreign Asset Control (OFAC) of the United States Treasury Department has modified the sanctions against cryptocurrency mixer Tornado Cash to include two people who are involved in “transportation and procurement activities” for the Democratic People’s Republic of Korea (DPRK) on its list of Specially Designated Nationals.
According to Cointelegraph, the Department of Treasury stated in a November 8, 2022 notice that it has “delisted and simultaneously renamed” Tornado Cash and taken into consideration the operations carried out by North Korean citizens Ri Sok and Yan Zhiyong for the sanctions. The government agency reportedly confirmed the allegations about the cryptocurrency mixer’s role in laundering $455 million in cryptocurrencies taken by the Lazarus Group, a North Korean company.
According to Brian Nelson, undersecretary of the Treasury for terrorism and financial intelligence, “today’s sanctions action targets two key nodes of the DPRK’s weapons programs: its increasing reliance on illicit activities, including cybercrime, to generate revenue and its ability to procure and transport goods in support of weapons of mass destruction and ballistic missile programs.”
In addition, Cointelegraph pointed out that several bitcoin industry players have been involved in legal actions against the US Treasury following the penalties against the mixer. In September 2022, it’s thought that a group of investors supported by the US-based cryptocurrency exchange Coinbase filed a lawsuit, arguing that the Treasury’s penalties against 44 addresses for USD Coin and Ether connected to Tornado Cash were “not in compliance with the law.”
