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The US Treasury on Monday sanctioned Tornado Cash
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The US Treasury on Monday sanctioned Tornado Cash

Tony40Tony40 Member
edited August 8 in News

Washington (CNN) -The US Treasury on Monday sanctioned Tornado Cash, a virtual currency mixer, for its use by cybercriminals, including those under US sanctions.

According to a senior Treasury official, Tornado Cash has reportedly laundered more than $7 billion in virtual currency since its launch in 2019, including $455 million from the Lazarus Group, a North Korean state-sponsored hacking group. It was also used as recently as last week to launder money from a "heist" of Nomad, a US cryptocurrency firm, the official said.

Monday's sanctions will prohibit US persons, and those subject to US jurisdiction, from using the virtual currency mixer. ..

https://www.cnn.com/2022/08/08/politics/us-cryptocurrency-sanctions-north-korea/index.html

Thanked by 1webcraft

Comments

  • Who could get have predicted?

  • Someone's going to make Cyclone Cash.

    Thanked by 1webcraft
  • How sanctions work in literally every online cryptocurrency service since the dawn of regulatory encroachment for crypto:

    1. Open Tor Browser
    2. Tor Browser picks a US exit node
    3. "Sorry, our totally legit service is unavailable in your location :("
    4. Click "New Circuit for this Site"
    5. Tor Browser picks a non-US exit node
    6. "Welcome to our service, the prime place for cybercriminals and drug dealers :)"
  • pacopaco Member

    @ehhthing said:
    Someone's going to make Cyclone Cash.

    Dude you're 2 years late on that.

  • netomxnetomx Member, Moderator
    1. "Welcome to our service, the prime place for cybercriminals and drug dealers :)"

    I thought criminals like cash.

  • edited August 10

    @netomx said:
    can someone explain to me?

    It is illegal for any US ‘person’ to engage in trade, economic transactions, or “other dealings” with any person, company, or country on the SDN List. This now includes using Tornado Cash.

    A US person is any citizen, resident, or company in the US.
    Jail time for violations is a maximum of 30 years.

    So what did crypto degens do?
    They start sending notable US citizens money from Tornado Cash

    Thanked by 2netomx Maounique
  • netomxnetomx Member, Moderator

    @johnnyquestion said:

    @netomx said:
    can someone explain to me?

    It is illegal for any US ‘person’ to engage in trade, economic transactions, or “other dealings” with any person, company, or country on the SDN List. This now includes using Tornado Cash.

    A US person is any citizen, resident, or company in the US.
    Jail time for violations is a maximum of 30 years.

    So what did crypto degens do?
    They start sending notable US citizens money from Tornado Cash

    Lol

    Thanks

  • redcatredcat Member

    That's what the 87,000 glowing new IRS agents are for.

  • @redcat said:
    That's what the 87,000 glowing new IRS agents are for.

    That and the PPP loans

  • emgemg Member
    edited August 10

    @netomx said:
    can someone explain to me?

    @johnnyquestion said:
    It is illegal for any US ‘person’ to engage in trade, economic transactions, or “other dealings” with any person, company, or country on the SDN List. This now includes using Tornado Cash.

    A US person is any citizen, resident, or company in the US.
    Jail time for violations is a maximum of 30 years.

    So what did crypto degens do?
    They start sending notable US citizens money from Tornado Cash

    What is the difference between those examples and when someone mails illegal drugs to a person in the US without their involvement or knowledge?

    The first questions the authorities will ask are, "Did the recipient have a prior relationship with the sender? Did the recipient expect the package? Did the recipient know in advance the contents of the package before opening it?"

    The celebrities who received TC'd ETH without prior knowledge of the transactions are not in any danger of being charged for violating the sanctions.

    Thanked by 1raindog308
  • MaouniqueMaounique Member
    edited August 10

    @emg said: The celebrities who received TC'd ETH without prior knowledge of the transactions are not in any danger of being charged for violating the sanctions.

    I don't think anyone doubts that, it was probably a stunt but I admit it wasn't clear to me before I read Johnny's explanation :P
    Probably because, since it is clear for me nobody would have a problem as a result, I didn't think it could be such a prank :D

    0.1 ETH is not bad, though. I was just looking at a smart watch :D

  • DataWagonDataWagon Member, Patron Provider

    @emg said:

    @netomx said:
    can someone explain to me?

    @johnnyquestion said:
    It is illegal for any US ‘person’ to engage in trade, economic transactions, or “other dealings” with any person, company, or country on the SDN List. This now includes using Tornado Cash.

    A US person is any citizen, resident, or company in the US.
    Jail time for violations is a maximum of 30 years.

    So what did crypto degens do?
    They start sending notable US citizens money from Tornado Cash

    What is the difference between those examples and when someone mails illegal drugs to a person in the US without their involvement or knowledge?

    The first questions the authorities will ask are, "Did the recipient have a prior relationship with the sender? Did the recipient expect the package? Did the recipient know in advance the contents of the package before opening it?"

    The celebrities who received TC'd ETH without prior knowledge of the transactions are not in any danger of being charged for violating the sanctions.

    No, they're not in danger of being charged, but think about how convoluted blacklisting funds from tornado cash becomes. Many exchanges have already blacklisted funds / wallets that have received money from Tornado. What happens now when one of these people goes and sends Eth into Coinbase or any other CEX? They're picked up automatically by the chainalysis software and likely have their funds held.

  • emgemg Member

    I agree that the situation is messy for the celebrities.

    How do they learn that the money was deposited in their wallets? How do they know that the money is tainted by sanctions issues? What happens if they spend it unknowingly? What if they spend it knowingly? (That is probably a violation.) How do they separate it from the non-sanctioned money in their wallet? What are they supposed to do with the sanctioned money anyway?

    Do celebrities even manage their own wallets personally?

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