Law Decoded, August 8-15: In the Eye of Tornado Cash

U.S. Treasury Links Crypto Mixer to $7 Billion in Laundered Money.

Summer is still around, reaping the new names for its list of hard-pressed crypto companies. This time the trouble came not from the market or from management but from the United States Treasury Department. The regulator has added more than 40 cryptocurrency addresses allegedly connected to the Tornado Cash crypto mixer to the list of specially designated nationals. These individuals and groups allegedly laundered over $7 billion worth of cryptocurrency.

Accusations like this don't come easy: One of Tornado Cash's co-founders has reported his account suspended on GitHub, while USD Coin (USDC) stablecoin issuer Circle has froze more than 75,000 USDC of funds tied to the problematic addresses. Late last week, the Dutch Tax Information and Investigation Service arrested a 29-year-old developer on suspicion of being involved in money laundering.

Law enforcement activity has not been taken lightly by the industry. Figures like Jake Chervinsky and Jerry Brito have criticized the Treasury Department for acting