According to The Block, the U.S. Treasury Department acknowledged in a 32-page report submitted to Congress this month that while cryptocurrency mixers are an illegal money laundering method, they may also have legitimate privacy use cases.
The report stated that some users might use mixers to protect sensitive information, such as personal asset information, corporate payment histories, and donation activities, on public blockchains.
The report states: “Legitimate digital asset users can utilize mixing services to protect their financial privacy when transacting on public blockchains.”
According to the ministry, if compliant, these services can provide useful data for investigations, including customer identities and off-chain transaction information.
This situation marks a departure from the institution’s previous stance.
This is because the US Treasury Department designated international crypto mixing platforms as money laundering hubs in 2023 and imposed sanctions on Tornado Cash in 2022.
However, the agency stressed that mixers are still being used to launder criminal proceeds, and that this is a fundamental problem. According to Treasury data, North Korean hacker groups stole at least $2.8 billion worth of digital assets between January 2024 and September 2025 using mixers in money laundering processes.
At this point, the ministry emphasized that those who engage in concealment activities must register with the Financial Crimes Enforcement Network (FinCEN) and as Money Services Enterprises (MSB).
*This is not investment advice.