The U.S. Department of the Treasury has answered some questions on restrictive compliance regarding Tornado money, a recently sanctioned crypto mixer. The answers embody the way to withdraw crypto or complete transactions initiated victimisation Tornado cash before its sanction and the way to deal with “dusting” transactions.d:
Treasury Department Publishes Tornado Cash Answers For Public
The U.S. Department of the Treasury answered some frequently asked queries Tuesday about the sanctioned cryptocurrency mixing service Tornado money.
On Aug. 8, the Treasury’s workplace of Foreign Assets control (OFAC) sanctioned the Ethereum-based mixer and prohibited U.S. persons from “engaging in any dealings with Tornado money or its blocked property or interests in property.”
One of the questions concerns how to complete transactions involving Tornado money that were initiated before the sanction. so as to complete the transactions or withdraw cryptocurrency while not violating U.S. sanctions rules, the treasury department explained:
U.S. persons or persons conducting transactions within U.S. jurisdiction may request a specific license from OFAC to engage in transactions involving the subject virtual currency.
“U.S. persons should be ready to provide, at a minimum, all relevant data regarding these transactions with Tornado money, together with the billfold addresses for the remitter and beneficiary, group action hashes, the date and time of the transaction(s), further as the amount(s) of virtual currency,” the Treasury value-added.
Another question relates to news obligations of “dusting” transactions. The Treasury noted that the OFAC is aware that “certain U.S. persons could have received unsought and nominal amounts of virtual currency or alternative virtual assets from Tornado money, a follow ordinarily noted as ‘dusting.'”
While cautioning that “Technically, OFAC’s rules would apply to those transactions,” the Treasury explained that if these dusting transactions don't have any alternative sanctions nexus besides Tornado Cash:
OFAC will not prioritize enforcement against the delayed receipt of initial blocking reports and subsequent annual reports of blocked property from such U.S. persons.
( Kevin Helms, Bitcoin.com, 2022)