Sen. Warren expresses concerns about Russian oligarchs, others using crypto mixers

During a recent Senate Banking, Housing, and Urban Affairs Committee hearing, U.S. Sen. Elizabeth Warren (D-MA) expressed concerns about crypto mixers being used by Russian oligarchs and others to evade sanctions.

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Additionally, Warren commended the U.S. Department of Treasury for sanctioning crypto mixing services facilitating illicit finance. Crypto mixers pool funds to hide the origins of the funds, estimating nearly a quarter of all funds sent to mixers this year came from illicit means.

“Ever since President Biden announced sanctions against Russia for the invasion of Ukraine in February, I’ve had serious concerns about Russian elites potentially using cryptocurrency to evade sanctions,” Warren said during the hearing. “Back then, we already knew that countries like North Korea had used crypto to skirt sanctions and launder at least hundreds of millions of dollars. And Russia could easily be part of that. So that’s why I introduced The Digital Asset Sanctions Compliance Enhancement Act, with many of my colleagues, actually on this Committee, to strengthen our sanctions regime.”

Warren indicated the Department of Treasury has identified numerous cases of Russian entities attempting to evade sanctions with crypto.

“I was glad to see last month that Treasury sanctioned Tornado Cash, a mixer used by a North Korea-linked hacking group, to launder nearly half a billion dollars,” Warren said. “Earlier this year, the mixing service, Blender, was sanctioned for laundering funds for Russian and North Korean groups. Now, some in the crypto industry are furious over these sanctions. And they are fighting to have the chance to keep right on laundering money. Some downplay, some even lie, about the risks associated with their products.”