Crypto firms say US restrictions against Tornado Cash hamper privacy software.
By The Exchange Team
The US Treasury facing a backlash from crypto industry over sanctions on a firm accused of helping launder money, Some got to North Korean hackers.
The Treasury Department sanctioned Tornado Cash this month for allegedly laundering $7 billion in virtual currency since 2019.
Mixing services combine digital assets, including stolen money, to hide their origins.
Crypto businesses, lobbyists, and at least one lawmaker have defended the firm, arguing the sanctions might limit Americans' use of privacy tools.
Coin Center, a nonprofit crypto advocacy group, believes Treasury's financial crimes enforcement arm "overstepped its legal authority"
Tether, a cryptocurrency corporation, has stated that it will not freeze its Tornado Cash accounts and will keep them active.
Treasury will use sanctions to defend the U.S. financial system from cyber theft and money laundering, a spokesperson said.