US Treasury says crypto mixers have legitimate privacy uses

The U.S. Treasury has stated in a recent report to Congress that cryptocurrency mixers can be used for legitimate financial privacy purposes, The Block reported. The report explained that some users may employ mixers to protect sensitive information on public blockchains, such as personal asset details, corporate payment histories, and donation activities. It also noted that custodial mixers are required to register as Money Services Businesses (MSB) with the Financial Crimes Enforcement Network (FinCEN). If compliant, these services can provide data useful for investigations, including customer identities and off-chain transaction information. However, the report also highlighted the potential for criminal abuse as a core issue. According to Treasury data, North Korean hacking groups stole at least $2.8 billion in digital assets between January 2024 and September 2025, using mixers in multi-stage money laundering processes.