OFAC redesignated a privacy-enhancing virtual currency mixing service that utilizes smart contracts "for its role in enabling malicious cyber activities, which ultimately support the Democratic People’s Republic of Korea's WMD program."
Coin Center, a cryptocurrency-focused non profit, sued Treasury and OFAC over the decision to designate the virtual currency mixer Tornado Cash on the Specially Designated Nationals and Blocked Persons List.
OFAC issued four FAQs related to a previously sanctioned virtual currency mixer used in facilitating illicit activities for OFAC-sanctioned entities.
OFAC sanctioned a virtual currency mixer responsible for laundering over $7 billion since its inception, as well as facilitating illicit activities for OFAC-sanctioned entities. This is the first time OFAC sanctioned a decentralized technology protocol instead of an individual, group or entity.
Treasury Under Secretary for Terrorism and Financial Intelligence Brian E. Nelson (i) reviewed the Department's efforts to target Russia's "war machine" and (ii) identified risks present in countering illicit finance.