The U.S. Treasury Department has accused all existing cryptomixers of money laundering
Regulators may impose restrictions on US financial institutions' transactions with crypto-mixers
The U.S. Treasury Department's Financial Crimes Enforcement Department has proposed to classify cryptomixers as a "primary money laundering tool." The regulator emphasized that cryptomixers are used for their purposes by terrorist groups as well as other criminals, including DPRK hackers.
"Today's action underscores the Treasury Department's interest in combating the use of cryptomixers by a wide range of criminal organizations, including hackers working for states, cybercriminals, and terrorist groups," said U.S. Treasury First Deputy Secretary Wally Adeyemo, referring to the agency's past actions against Tornado Cash and Blender.io. The regulator also added that blocking mixers serves as a key part of the effort to increase transparency in the crypto market.
Andrea Gacchi, director of the department, said that this is "the first time in its history" that the Finance Ministry is using the authority to combat money laundering through a specific type of transaction. The regulator could impose restrictions on U.S. financial institutions' transactions with cryptomixers, which could include requiring additional checks and special scrutiny of specific transactions.
Last August, Tornado Cash founder Alexey Pertsev was arrested in Amsterdam. The developer is accused of money laundering through cryptomixer, but he denies the charges against him.
In mid-October, 86 members of the US Congress - both Democrats and Republicans - published a letter to President Biden, in which they demanded additional measures against terrorist financing through cryptocurrencies.
- BlackRock chief says customer demand for cryptocurrency is high
- Tether has frozen assets linked to conflicts in Israel and Ukraine
- Binance exchange burned more than $500 million worth of BNB tokens
- Ferrari has started accepting payment for cars in cryptocurrencies at the request of customers
- Cointelegraph explained the reason for publishing a fake news story about bitcoin-ETF approval
- WSJ: the U.S. government is one of the largest holders of bitcoin
- Elliptic uncovered 'ties to Russia' in laundering stolen FTX funds