Crypto exchange OKX has issued a warning to Tornado Cash users.

The crypto mixer is facing increased scrutiny.

Tornado Cash founders are facing legal consequences. Tornado Cash, the anonymizing mixing tool used for obscuring asset trails, has increasingly found itself in regulatory crosshairs, due to its use by sanctioned entities to conceal illicit financial transactions. Over the past few years, this scrutiny has intensified, leading to sanctions and bans on its operations by regulatory authorities.Adding to the pressure, crypto exchange OKX has issued strong warnings to curb the mixer’s usage.No Tornado Cash Funds Allowed: OKX  A recent thread on the social media platform X by the exchange’s CEO has outlined a strict policy against crypto accounts linked to Tornado Cash.  Sponsored According to the August 9 statement, users accounts interacting with the crypto mixer in form of deposits or withdrawals trigger compliance risk control, ultimately resulting in a complete account liquidation.“Anyone who deposits from Tornado Cash to OKX, or withdraws money from OKX to Tornado Cash, will trigger account liquidation, and no one is exempt,” the warning read.The announcemnet followed a X user ‘Satoshi Friends’ complaint over the exchange’s services. In a thread labeled “All OKX EXCHANGE USERS ARE AT RISK,”Satoshi Friends stressed that the exchange blocked their account, urging others to cease use of the platform.However, OKX’s CEO clarified that Satoshi Friends’ account violated the exchange’s sanction control policy by interacting with sanctioned protocols, resulting in blocking and the termination of services. Sponsored The exchange’s chief further stated that individuals associated with sanctioned entities, such as Garantex or Tornado Cash, can not access OKX’s services, adding that the long existing policy aims to ensure compliance with regulatory standards, including those set by the United States.Tornado Cash and US Sanctions ViolationsFirst sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on August 8th, 2022, Tornado Cash, founded by Roman Storm, Alexey Pertsev, and Roman Semenov, has faced allegations of knowingly facilitating major cybercrimes and thefts. The indictment stated that the crypto mixer was used to launder more than $455 million by the notorious North Korean hacker group, Lazarus, resulting in a temporary ban on its operations.Subsequently in August 2023, the U.S. Department of Justice unveiled charges against two of Tornado Cash’s principal co-founders, Roman Storm and Roman Semenov, for allegedly facilitating money laundering of more than $1 billion in illegal transactions. The founders were also arrested and charged with conspiracy to violate sanctions and operate an unlicensed money-transmitting business. Pertsev was recently sentenced to a 64-month prison term, while Storm and Semenov remain locked in a legal battle with the DOJ.On the Flipside Industry figures such as Vitalik Buterin have openly offered support to Tornado Cash founders amid their legal woes.

Despite increasing sanctions, hackers continue to move funds through the crypto mixer.

Crowdfunding efforts to support Tornado Cash founders Storm and Petsev in their legal battle have faced setbacks. Why This MattersOKX’s reaffirmation of its policy against Tornado Cash is a key alert to users, emphasizing the importance of avoiding interactions with the crypto mixer  to prevent potential fund losses and regulatoory complications.Discover the latest in the legal battle between Tornado cash founders and the US DOJ:Tornado Cash Dev Roman Storm Seeks Trial Date ContinuanceDonald Trump’s crypto campaign is heating up with token launch rumors, find out more here:Trump Family Warns of Unofficial Crypto as Teaser Continues