According to Cointelegraph, several Democratic members of the U.S. House of Representatives have demanded that the Treasury Department respond to the enforcement of sanctions against Tornado Cash. Tornado Cash was sanctioned in 2022 but continues to operate.
In a letter dated November 14, the lawmakers pointed out that despite being sanctioned, Tornado Cash continues to operate online in the form of decentralized smart contracts. In the first half of this year, Tornado Cash accepted $1.8 billion in deposits, a 45% increase from 2023.
The letter cited examples of Tornado Cash providing mixing services for rogue states, terrorist organizations, and cybercriminals, and requested information from the Treasury Department regarding relevant law enforcement actions.
The lawmakers also inquired whether the Treasury Department is considering implementing secondary sanctions against non-U.S. individuals or exchanges interacting with mixed funds and requested a response by December 2, 2024.
Additionally, the money laundering and sanctions violation case against Tornado Cash co-founder Roman Storm has been postponed until April 2025.