Tornado Cash Founders–Linked to North Korea–Indicted for Laundering Over $1 Billion in Criminal Proceeds

The U.S. Department of Justice (DOJ) recently unsealed an indictment charging the founders of Tornado Cash with a series of offenses related to money laundering and sanctions violations.

What is Tornado Cash?

Tornado Cash is a cryptocurrency mixer that facilitated the laundering of more than $1 billion in criminal proceeds, including transactions for the Lazarus Group, a sanctioned North Korean cybercrime organization.

This cryptocurrency mixer purported to offer users untraceable and anonymous financial transactions, allowing for the movement of funds without detection.

Ties to North Korea

The indictment reveals that Tornado Cash played a crucial role in laundering hundreds of millions of dollars for the Lazarus Group, a North Korean cybercrime organization.

The Tornado Cash co-founders allegedly knew of these transactions and received complaints from hacking victims, but failed to take any meaningful action to prevent further illicit activities.

Attempting to Conceal Sanctions Violations

In a deceptive move, Tornado Cash allegedly altered the service to make it appear compliant with sanctions laws.

While publicly claiming to adhere to these regulations, the founders privately acknowledged the ineffectiveness of this change.

They then continued to facilitate transactions for the Lazarus Group, even as the group’s activities violated international sanctions.

Closing Thoughts

The indictment of the Tornado Cash co-founders sheds light on the sophisticated schemes employed by cybercriminals to exploit the anonymity and flexibility offered by cryptocurrencies.

Additional Reading:

IP Probe Blog – 1/6/23 — NFT Collectors Beware—North Korean Hackers are Phishing in Your Waters

Disclaimer: IPProbe.Global is a service to the professional IP community. While every effort has been made to check information in this blog, we provide no guarantees or warranties, express or implied, regarding the content provided in IPProbe.Global. We disclaim all liability and responsibility for the qualification or accuracy of representations made by the contributors or for any disputes that may arise. It is the responsibility of the readers to independently investigate and verify the credentials of such persons and the accuracy and validity of the information provided by them. This blog is for general information only and not intended to provide legal or other professional advice.