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August 25, 2022

Developer at Treasury-sanctioned Tornado Cash worked for company linked to Russian security agency

The Treasury Department sanctioned Tornado Cash on Aug. 8, alleging that hacking groups including North Korea’s Lazarus Group have used the service to launder billions of dollars. The Dutch government arrested Pertsev, a Netherlands resident, two days later on suspicion of “involvement in concealing criminal financial flows and facilitating money laundering.”

“This opens up a lot of credibility issues for the developers of Tornado Cash,” said Alex Zerden, an adjunct senior fellow at the Center for a New American Security. “This is pretty profound information that informs why the U.S. government and Dutch authorities have taken certain actions.”

Read the full article from Fortune.