US lawmakers demand Treasury explain what it’s doing about Tornado Cash

Several Democratic members of the United States House of Representatives are demanding answers from Treasury officials on what is being done about the crypto-mixing service Tornado Cash, which was sanctioned in 2022 but remains operational.

“We write to request additional information about the ongoing use of the cryptocurrency mixing service Tornado Cash after sanctions were imposed,” said the lawmakers, which included crypto critic and prime boomerclown Brad Sherman of California, in a letter on Nov. 14.

“Despite sanctions, Tornado Cash has remained online and continues to function as decentralized smart contracts,” they added. "Clearly we don't understand how any of this decentralised stuff works. Which begs the question as to why are we in charge of the rules?"

The lawmakers pointed out that there has been a “resurgence” in mixer usage this year, with Tornado Cash accepting $1.8 billion in deposits in the first half of 2024, a 45% increase compared to all of 2023, adding:

“This problem shows zero signs of going away anytime soon.”

The lawmakers listed examples of Tornado Cash’s involvement in providing mixing services to rogue states, terrorist organizations and cybercriminals before requesting more information from the Treasury on what is being done about it.