cryptonews.net
In the lawsuit, the U.S. Department of Justice (DOJ) indicated that Larry HARMON, who managed the mixer, failed to pay a civil penalty imposed on him for alleged negligence in implementing anti-money laundering measures through the platform. This is stated in the lawsuit filed on October 19. According to the lawsuit, Harmon helped criminals use cryptocurrencies through his service, hiding their activities.
In 2020, Harmon was fined by the U.S. Department of Treasury through the Financial Crimes Enforcement Network (FinCEN) after he allegedly violated the federal Bank Secrecy Act (BSA). According to the agency, the defendants ran an unlicensed money transfer business. In 2021, Harmon pleaded guilty to money laundering conspiracy charges but has yet to be sentenced.
The Treasury Department stepped up its crackdown on crypto mixers, and Ethereum (ETH)-based Tornado Cash is the latest victim of the sanctions. The service has been sanctioned for alleged non-compliance with anti-money laundering policies. The Treasury has been criticized by some crypto market participants, accusing the state agency of restricting freedom of speech. The latest action against crypto mixers has been described by the department as a "knee-jerk reaction" to protect consumer interests following the collapse of the Terra (LUNA) ecosystem.
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