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Allowing to mix cryptocurrencies to redistribute them without leaving a trace, the Tornado Cash tool can be used to easily launder money. After an initial admonition, the United States finally banned the site.
Tornado Cash banned in the United States © Pexels
A cryptocurrency mixer is a service to hide the origin of the funds owned. The system is simple: several people just need to pool their cryptocurrencies for a certain period of time before everyone takes back their share. This makes it possible to conceal the traceability of these funds, but also to evade the transaction control authorities. Tornado Cash then proves to be the perfect tool for laundering money.
And that is what the American financial authorities reproach him for. According to them, the tool would have made it possible to launder up to seven billion dollars since its creation. This is why these same authorities have decided to ban the use of Tornado Cash for all Americans. A sanction which falls after requests for controls of the funds which were not carried out by the company, always according to the American authorities. From now on, no American citizen is allowed to have a Tornado Cash account. Associations have already taken legal action, considering that the American financial authorities have exceeded the limits of their authority.