Seven US Representatives Ask Treasury Secretary Janet Yellen Why Tornado Cash Remains Online Despite Sanctions
A handful of Democratic US Representatives are grilling Treasury Secretary Janet Yellen on the continued accessibility of Tornado Cash, an Ethereum (ETH)-based coin mixing system that helps users conceal their digital assets.
The US sanctioned the controversial project in 2022 for national security purposes, but seven members of the House of Representatives wrote to Yellen last week to request information about the mixer and its current use.
The group of lawmakers, which includes vocal anti-crypto critic Brad Sherman (D-California), says Tornado Cash has remained online and continued to function as decentralized smart contracts despite the sanctions.
“Tornado Cash’s U.S.-based website was pulled down, though its smart contracts can run indefinitely, and anyone can technically use Tornado Cash at any time. The user-friendly website made it easier to utilize the service, though ‘sophisticated’ users can still directly access its smart contracts, according to the Justice Department.
Cryptocurrency mixers present serious national security risks and are used by a variety of illicit actors, including North Korea, Hamas, and the Palestinian Islamic Jihad (PIJ). As the Treasury Department has noted, due to the pressure of U.S. and United Nations sanctions, North Korea has resorted to illicit activities, including cyber-enabled heists from cryptocurrency exchanges and financial institutions, to generate revenue for its unlawful weapons of mass destruction and ballistic missile programs. Since 2017, North Korean hackers have stolen more than $3.6 billion in cryptocurrency, according to UN sanctions experts.”
The legislators asked the Treasury Department to provide estimates of the level of illicit and legitimate activity that has been funneled through Tornado Cash since August 2022. They also ask whether the Treasury Department is taking action against individuals and/or crypto exchanges that accept mixed funds from the platform.
One of Tornado Cash’s founders, Roman Storm, was arrested last year and slapped with charges related to allegedly laundering $1 billion in criminal proceeds, including hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercriminal outfit.
Storm’s trial was recently pushed from December to April 2025.
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