US lawmakers, particularly from the Democratic party, are seeking explanations from the Treasury regarding the ongoing operation of the crypto-mixing service Tornado Cash, which was sanctioned in 2022. Despite being sanctioned, Tornado Cash has continued to function as a decentralized service. In a letter dated November 14, lawmakers highlighted a surge in the use of the mixer, with deposits increasing by 45% in the first half of 2024 compared to all of 2023. They expressed concern that this issue is not diminishing. Tornado Cash was sanctioned for laundering over $7 billion in cryptocurrency, including funds linked to North Korean hacking groups. The lawmakers requested information on illicit activities related to Tornado Cash since the sanctions were imposed, asked for an estimate of enforcement actions against users or exchanges utilizing the service, and inquired about potential secondary sanctions. They also requested a timeline for new regulations about crypto mixers and a response from the Treasury by December 2, 2024. Additionally, there is an ongoing case challenging the legality of the sanctions against decentralized services.

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