Ethereum From Tornado Cash Have Been Sent to Notable Individuals Like Shaquille O'Neal, Jimmy Fallon

Since its launch in 2019, Tornado Cash has allegedly been used to launder virtual money valued at more than $7 billion.

US Department of the Treasury Imposed Sanctions Against Tornado Cash

The Lazarus Group, a hacking group linked to the North Korean government, is said to have laundered more than $455 million thanks to Tornado Cash, according to sanctions imposed on Monday by the U.S. Department of the Treasury.

U.S. sanctions are in place against the Lazarus Group, a state-sponsored hacking organization that has been linked to multiple big data breaches, including one against Sony Pictures in 2014, as per the news story of Aljazeera.

Since its launch in 2019, Tornado Cash has allegedly been used to launder virtual money valued at more than $7 billion, as claimed by the Treasury Department.

"Despite public assurances otherwise," said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E Nelson, "Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks."

Crypto Currency From Tornado Cash Were Sent to Prominent Individuals

Intervals of 0.1 Ether (ETH) transactions started to appear from the smart contract on Tuesday, one day after the U.S.Treasury sanctioned cryptocurrency mixer Tornado Cash for its alleged involvement in cryptocurrency money laundering operations, according to a report by Cointelegraph.

Prominent individuals like basketball player Shaquille O'Neal, American DJ Steve Aoki, Coinbase CEO Brian Armstrong and American television host Jimmy Fallon were among the recipients.

The news outlet noted that sanctions prevent any U.S. individuals or organizations from doing blockchain or commercial transactions utilizing Tornado Cash's smart contract addresses. Willful disobedience carries fines ranging from $50,000 to $10,000,000 and prison sentences ranging from 10 to 30 years.

However, the Tornado Cash design makes it impossible to identify the origin of the transactions, therefore either one person or a number of people or groups could be involved in the operation.

Will These Famous People Be Penalized?

Cointelegraph mentioned that the frequency of the transactions suggests that the sender(s) may be launching a prank in an effort to draw law enforcement's attention to the recipients.

The Treasury sanctions, however, call for "willful" interaction with the blacklisted smart contract addresses as a prerequisite for any legal action. It is therefore, as Cointelegraph noted, that it is unlikely that receiving Tornado Cash tokens for free, without their knowledge or consent, could be considered a violation of the sanctions.

The U.S. Government Offered Rewards for Tips Leading to North Korean-Backed Hackers

As we have previously reported, up to $10 million in rewards have been offered by the U.S. government in exchange for information that helps it halt the flow of illicit funds to North Korea.

According to the State Department, anybody with information on the members of any threat groups backed by North Korea will receive rewards. These organizations include the Lazarus Group, Andariel, APT38, Bluenoroff, Guardians of Peace, and Andariel.

The State Department's Rewards for Justice program seeks information that will enable people engaged in particular acts that help North Korea to have their financial systems disrupted.