Tornado Cash Laundered 75% Of Stolen ETH

Tornado Cash has become a popular money laundering platform with incidents rapidly increasing on Ethereum and Binance Smart Chain on a consistent uptrend. A large number of illicit funds have lost track of after going through the mixing service.

According to a new report by blockchain security platform SlowMist, 74.6% of stolen funds (or nearly 300,160 ETH) on the Ethereum network were transferred to Tornado Cash in the first half of 2022.

Cryptocurrency mixing services have been a major area of controversy by regulators around the world. On the other hand, Tornado Cash has been caught up in a new storm of controversy because of its connection to the North Korean state-sponsored hacking group Lazarus.

The US Treasury Department revealed that Lazarus Group was behind some of the biggest hacks in the crypto space, including the Ronin bridge hack, according to a US Federal Bureau of Investigation (FBI) announcement. As a result, Tornado Cash was discovered for enabling the laundering of billions of dollars worth of money through its platform.

Since its inception in 2019, data shows that Tornado Cash is estimated to have been used to launder over $7 billion worth of digital assets. The Office of Foreign Assets Control (OFAC) imposed sanctions on the mixing service earlier this month, immediately banning US citizens and businesses from using it.

Then, Kraken, the USDC stablecoin, run by a consortium of Circle and Coinbase, blocked accounts linked to Tornado Cash. The strict action by the Treasury watchdog may have led many in the industry to block addresses associated with the mixing service, sparking a new round of discussions about how protocols and companies will comply with regulations set by the government.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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