Tornado Cash sold crypto “privacy”; the US saw “money laundering.”

The article discusses the U.S. government's actions against Tornado Cash, a cryptocurrency mixer service. Tornado Cash aimed to provide privacy for cryptocurrency transactions, but the U.S. government accused it of facilitating money laundering, including by North Korean hackers. The U.S. Treasury Department sanctioned Tornado Cash, alleging that it had been used to launder more than $7 billion worth of cryptocurrency, including funds stolen by North Korean hackers. The government claimed that Tornado Cash's design, which allowed users to obscure the origin and destination of their transactions, made it an attractive tool for criminal activities. The article highlights the tension between the need for privacy in cryptocurrency transactions and the concerns of law enforcement agencies about the potential misuse of such privacy features. It suggests that the U.S. government's actions against Tornado Cash reflect its efforts to combat the use of cryptocurrency in illicit activities, even if it means restricting access to privacy-enhancing tools.