The U.S. Treasury Department is “redesignating” Tornado Cash as a sanctioned entity, overtly alleging that North Korea has used the crypto mixing …
The U.S. Treasury Department is “redesignating” Tornado Cash as a sanctioned entity, overtly alleging that North Korea has used the crypto mixing service to support its weapons of mass destruction (WMD) program.
The Treasury Department’s Office of Foreign Asset Control (OFAC) said Tuesday it would delist and redesignate the privacy tool, which pools transactions to obfuscate senders and recipients, on allegations that North Korea has laundered over $100 million worth of crypto through Tornado Cash to support its WMD program, including the development of ballistic missiles.
“This action is part of the United States’ ongoing efforts to limit the DPRK’s ability to advance its unlawful weapons of mass destruction (WMD) and ballistic missile programs that threaten regional stability and follows numerous recent DPRK ballistic missile launches, which are in clear violation of multiple United Nations (UN) Security Council resolutions,” a Treasury press release said.
North Korea has fired a number of its missiles in recent months, prompting panic in Japan and South Korea, as the missiles flew in their general direction, though no missile hit land.
In addition to Tornado Cash, OFAC sanctioned North Korea’s national flag airline, Air Koryo, and two individuals the watchdog said helped North Korea transfer missile parts into the country.
In a statement, Treasury Undersecretary for Terrorism and Financial Intelligence Brian Nelson said, “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.”
