According to Cointelegraph, several Democratic members of the U.S. House of Representatives have asked the Treasury Department to respond to the sanctions enforcement of Tornado Cash, which was sanctioned in 2022 but is still operating.
The lawmakers noted in their Nov. 14 letter that Tornado Cash, which operates online as a decentralized smart contract despite sanctions, received $1.8 billion in deposits in the first half of this year, a 45% increase from 2023.
The letter cited examples of Tornado Cash providing mixing services to rogue states, terrorist organizations, and cybercriminals, and asked the Treasury Department to provide information on related law enforcement actions.
Lawmakers also asked the Treasury Department whether it was considering imposing secondary sanctions on non-U.S. individuals or exchanges that interact with mixed funds, and requested a response by Dec. 2, 2024.
Additionally, Tornado Cash co-founder Roman Storm’s money laundering and sanctions violations case was postponed to April 2025.