Crypto ‘Mixer’ Twister Money Is Blacklisted by the Treasury Division


The Treasury Division on Monday prohibited People from utilizing the cryptocurrency platform Twister Money, saying the service has helped criminals launder greater than $7 billion of digital currencies.

The crackdown was the U.S. authorities’s newest effort to rein within the crypto business, as lawmakers and regulators develop more and more involved over the volatility of digital currencies and their function in facilitating hacking and different crimes. Calling the platform a “risk to U.S. nationwide safety,” the Treasury Division positioned Twister Money on a blacklist of sanctioned entities, making it unlawful for People to ship or obtain cash utilizing the service.

“Regardless of public assurances in any other case, Twister Money has repeatedly did not impose efficient controls designed to cease it from laundering funds for malicious cyber actors,” Brian Nelson, the below secretary for terrorism and monetary intelligence, stated in a press release.

Criminals have lengthy used digital currencies to transact anonymously, exchanging digital cash for medication or different illicit wares. However the anonymity of crypto doesn’t present blanket safety: Crypto transactions are recorded on publicly viewable ledgers referred to as blockchains, permitting regulation enforcement officers to comply with the cash.

Platforms like Twister Money are designed to make that type of monitoring more durable. These crypto “mixers” obtain a number of streams of transactions, then mix them to obscure the origin and vacation spot of the funds. In accordance with the Treasury Division, Twister Money was used to launder greater than $455 million in crypto stolen this yr by North Korean-backed hackers referred to as the Lazarus Group.

A message to Twister Money’s official Twitter account was not returned. Roman Semenov, one of many firm’s three founders, didn’t reply to a request for remark.

Since its launch in 2019, Twister Money has risen to prominence largely as a result of blockchain data present that hackers have used it to maneuver stolen cryptocurrencies. In interviews, Mr. Semenov has defended the service, saying the software program protects the privateness of official crypto merchants who could possibly be focused by kidnappers or thieves.

In a press release, the crypto advocacy group Coin Middle criticized the Treasury Division’s announcement, arguing that Twister Money was a impartial platform “that may be put to good or dangerous makes use of like every other know-how.”

“It’s not any particular dangerous actor who’s being sanctioned,” the assertion stated. “As a substitute it’s all People who could want to use this automated device so as to defend their very own privateness whereas transacting on-line.”

As the marketplace for digital currencies has grown, the federal authorities has more and more cracked down on crypto corporations, that are frivolously regulated. Tether, a stablecoin firm, was fined final yr by the Commodity Futures Buying and selling Fee for misstatements about its reserves, whereas the Justice Division introduced insider-trading prices final month towards a former worker of Coinbase, the biggest U.S. crypto trade.

The cryptocurrency trade Kraken can also be below investigation by the Treasury Division for potential violations of U.S. sanctions.