Authorities alleged that the mixer had laundered approximately $7 billion worth of cryptocurrency since its inception, with nearly a third tied to illicit actors including North Korea’s Lazarus Group. Sanctioning aimed to disrupt the protocol’s ability to obscure transaction trails and deter criminal money flows.
The action marked a significant escalation in regulatory enforcement against privacy-enhancing tools. It underscored the tension between financial privacy and anti-money-laundering objectives, prompting other jurisdictions to consider similar measures.
