US Treasury Official Says Crypto Mixers Are a 'Concern' in Sanctions Enforcement
Treasury Department Assistant Secretary Elizabeth Rosenberg Says Sanctioning Crypto Mixers Could Help Deter Entity Money Laundering in Russia, Iran and North Korea.
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Elizabeth Rosenberg, assistant secretary for terrorist financing and financial crimes at the U.S. Treasury Department, suggested that sanctioning cryptocurrency mixers could help bolster the government's response to foreign entities seeking to use digital assets for illicit purposes.
During a Tuesday hearing of the Senate Banking Committee, which covered Russia sanctions, Rosenberg said the fact that the Treasury Department is adding crypto mixers like Blender.io or Tornado Cash to its list Specially Designated Nationals could be an effective way to signal the U.S. government was acting to prevent entities from evading sanctions.
"While [sanctions] can act as a deterrent to any criminal seeking to use a blender to launder their funds [...] it is an effective way we can use to signal that we cannot tolerate money laundering," Rosenberg said. "Whether it's a Russian criminal actor, an Iranian, a North Korean, or wherever he comes from."
She added:
"Anonymity-enhancing technologies such as blenders [...] are indeed a concern for understanding and capturing the flow of illicit finance."
Elizabeth Rosenberg addressing the Banking Committee from the US Senate on TuesdayRosenberg answered questions from Massachusetts Senator Elizabeth Warren, who said some in the crypto space were "furious" about Treasury-sanctioning mixers and suggested that Russian oligarchs could use digital assets to avoid efforts aimed at having an economic impact on individuals and entities linked to the war against Ukraine. Many in the space have criticized Treasury stocks, including Coinbase – the crypto exchange announced on September 8 that it would be
Treasury Department Assistant Secretary Elizabeth Rosenberg Says Sanctioning Crypto Mixers Could Help Deter Entity Money Laundering in Russia, Iran and North Korea.
New
Elizabeth Rosenberg, assistant secretary for terrorist financing and financial crimes at the U.S. Treasury Department, suggested that sanctioning cryptocurrency mixers could help bolster the government's response to foreign entities seeking to use digital assets for illicit purposes.
During a Tuesday hearing of the Senate Banking Committee, which covered Russia sanctions, Rosenberg said the fact that the Treasury Department is adding crypto mixers like Blender.io or Tornado Cash to its list Specially Designated Nationals could be an effective way to signal the U.S. government was acting to prevent entities from evading sanctions.
"While [sanctions] can act as a deterrent to any criminal seeking to use a blender to launder their funds [...] it is an effective way we can use to signal that we cannot tolerate money laundering," Rosenberg said. "Whether it's a Russian criminal actor, an Iranian, a North Korean, or wherever he comes from."
She added:
"Anonymity-enhancing technologies such as blenders [...] are indeed a concern for understanding and capturing the flow of illicit finance."
Elizabeth Rosenberg addressing the Banking Committee from the US Senate on TuesdayRosenberg answered questions from Massachusetts Senator Elizabeth Warren, who said some in the crypto space were "furious" about Treasury-sanctioning mixers and suggested that Russian oligarchs could use digital assets to avoid efforts aimed at having an economic impact on individuals and entities linked to the war against Ukraine. Many in the space have criticized Treasury stocks, including Coinbase – the crypto exchange announced on September 8 that it would be
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