US Senator Elizabeth Warren on Tuesday raised the alarm that oligarchs in Russia trying to evade sanctions are using cryptocurrency mixers. Within this framework, “scramblers” like Tornado Cash behind altcoin TORN were discussed in the Senate. Here are the details…
USA vs mixers like Tornado Cash behind altcoin TORN
Crypto mixers, as we’ve also reported as cryptokoin.com, are used to increase the anonymity of users and their transactions, including a way to hide the origin of their funds. Mixers are often used by crypto holders, sometimes for legitimate reasons, to protect privacy on the Ethereum Blockchain. However, some officials worry that they could also be used for money laundering.
During Tuesday’s Senate hearing on Russian sanctions, Warren denounced the crypto industry. He pointed to Tornado Cash, a leading mixing service that is said to have recently been used by the Treasury Department to launder over $7 billion in cryptocurrencies. Warren used the following statements at the hearing:
I had serious concerns about the potential for Russian elites to use cryptocurrency to evade sanctions. We already knew that countries like North Korea are using crypto to circumvent sanctions and launder at least hundreds of millions of dollars, and Russia could easily be a part of it.
Warren also criticized Coinbase
Warren also criticized Coinbase, the largest U.S.-run cryptocurrency that supports Tornado Cash users’ lawsuit against the Treasury Department. He claimed that the department had overstepped its authority to issue such sanctions. Elizabeth Rosenberg, assistant secretary for terrorism financing and financial crimes at the U.S. Treasury Department, told Warren that it’s possible for Russian oligarchs to use these currencies to evade sanctions.
However, Rosenberg added that sanctions such as those imposed on Tornado Cash could be a deterrent to future money launderers. In March, Warren introduced the “Digital Asset Sanctions Compliance Improvement Act,” which aims to provide additional sanctions against Russia as well as provide greater transparency when it comes to cryptocurrencies. Finally, according to Warren, “those who have nothing to hide about money laundering, drug lordship or tax evasion; should not mind transparency.”
TORN price continues to decline
The cryptocurrency continued its decline on a daily basis as Tornado Cash took a hit from regulators. TORN fell from $ 7.34 to $ 6.67 during the day. Currently, it has registered an 8 percent decline. It has lost 23.1 percent in the last week. It fell 30 percent in the last 30 days and 89 percent in a year.
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