Hillicon Valley — Treasury blacklists crypto mixing service

The Treasury Department blacklisted Tornado Cash, a cryptocurrency mixer service, for allowing hackers to launder illicit funds. 

Meanwhile, a Republican commissioner serving on the Federal Trade Commission announced his resignation on Monday.  

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Treasury sanctions crypto mixer 

The Treasury Department imposed sanctions on Monday against cryptocurrency mixer Tornado Cash for helping hackers launder more than $7 billion worth of virtual currency since it launched in 2019. 

According to the department, Tornado Cash has allowed cyber groups, including North Korean-backed hackers, to use its platform to launder the proceeds of cybercrimes. 

• For instance, the Lazarus Group, a state-sponsored hacking group tied to North Korea, used Tornado Cash to steal more than $455 million in cryptocurrency, the largest known virtual currency heist to date, the department said.
   
• The Treasury Department also disclosed that Tornado Cash was used to launder more than $96 million of illicit cyber funds originating from the Harmony bridge heist and at least $7.8 million from the Nomad crypto theft. 
  
• “Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks,” said Brian Nelson, Treasury’s under secretary for terrorism and financial intelligence. 

Read more here. 

Republican commissioner to step down at FTC 

One of two Republicans on the Federal Trade Commission (FTC), Noah Phillips, told FTC staff Monday he will be leaving the agency.  

Phillips, who was appointed by former President Trump, sent President Biden a letter Monday morning notifying him of his intent to resign, according to a copy of the email sent to FTC staff.  

“Serving the American people by working with my extraordinary Commission colleagues and the incredible career staff at the agency to protect American consumers has been the honor of my lifetime. I have learned so much from all of you over the last four years, and am inspired by the commitment you bring to the incredible work of the FTC,” he wrote in the email.  

The email did not lay out a specific timeline for Phillips’s resignation.  

Phillips’s departure will not likely impact FTC Chairwoman Lina Khan’s goals, since she will be keeping her Democratic majority. 

Read more here.  

MUSKS SUGGESTS TWITTER DEAL COULD STILL HAPPEN 

Tesla CEO Elon Musk suggested early Saturday that his acquisition deal with Twitter could still go through if the social media platform provided information about how it confirms that sampled accounts are real. 

“If Twitter simply provides their method of sampling 100 accounts and how they’re confirmed to be real, the deal should proceed on original terms,” Musk tweeted.

“However, if it turns out that their SEC filings are materially false, then it should not.” 

Later he tweeted he was challenging the CEO of Twitter to a debate. 

“I hereby challenge @paraga to a public debate about the Twitter bot percentage. Let him prove to the public that Twitter has <5% fake or spam daily users!” Musk tweeted. 

Musk also tweeted out a poll asking if less than 5 percent of daily users on Twitter were spam or fake.  

The tweets from Musk are the latest in the drama between the SpaceX CEO and the social media platform following legal action over his bid to buy Twitter. 

Read more here.  

BITS & PIECES

An op-ed to chew on: Big Tech’s court wins risk a big backlash against Section 230 

Notable links from around the web: 

After Losing Favor to Electric Cars, Plug-In Hybrids Gain Ground (The New York Times / Lawrence Ulrich) 

Inflation is helping gig companies like Uber — and hurting their workers (The Washington Post / Gerrit De Vynck, Faiz Siddiqui and Nitasha Tiku) 

Conspiracy Theories and Uncertainty About Monkeypox Are Spreading Really, Really Fast (Motherboard / Anna Merlan) 

One more thing: Axios sold for $525M 

Axios, the digital media company founded by Jim VandeHei, Mike Allen and Roy Schwartz, has sold to Cox Enterprises for more than a half billion dollars. 

Cox Enterprises is a publicly traded media conglomerate that was founded on ownership of local newspapers. Today its subsidies include cable provider Cox Communications, Cox Automotive and Cox Media Group. 

Sources familiar with the deal said the agreement to purchase Axios totals $525 million. 

“With so much happening in the world, Axios plays a critical role in delivering balanced, trusted news that people need,” said Cox Enterprises Chairman and CEO Alex Taylor. “Our company started in the media business, and we have always had a passion for journalism. Bringing a forward-thinking organization like Axios into Cox Enterprises is exciting for us on many levels, and we look forward to helping them continue to scale and grow.” 

Read more here. 

That’s it for today, thanks for reading. Check out The Hill’s Technology and Cybersecurity pages for the latest news and coverage. We’ll see you tomorrow.

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