Despite US sanctions, crypto mixer Tornado Cash has continued its operations, reportedly laundering over $500 million worth of crypto in 2023, according to data provided by blockchain security firm SlowMist. The US imposed sanctions on the crypto mixer in 2022, but this did not deter the service from laundering over $550 million in crypto the following year.
In a thread on X (formerly Twitter), SlowMist detailed the activities of various nefarious actors in 2023. The firm revealed that around 342,042 ETH (Ethereum) was deposited into Tornado Cash, and 314,740 $ETH was withdrawn from the crypto mixer. The year 2023 saw a notable surge in the use of advanced tools like Sinbad, Tornado Cash, and Railgun, which are complicating the tracing of illicit transactions and represent a significant challenge in combating crypto-related crimes.
SlowMist further detailed that in 2023 alone, 342,042 ETH was deposited and approximately 314,740 ETH was withdrawn from Tornado Cash. Users also deposited 47,235 ETH into eXch and 25,508,148 ERC20 stablecoins into eXch. The firm noted that the infamous North Korean hacking group Lazarus was less visible throughout the year.
The US government sanctioned Tornado Cash after the Treasury’s Office of Foreign Assets Control (OFAC) added it to its SDN list in August 2022, alleging it facilitated the laundering of billions in illicit funds. The crypto mixing service has been linked to the Lazarus Group, a well-known North Korean government-backed hacking group, and reportedly laundered over $7 billion in virtual currency since its creation in 2019.
Days after the US sanctioned the mixing service, one of Tornado’s developers was arrested in the Netherlands. In August 2023, the US government charged two Tornado Cash co-founders, Roman Storm and Roman Semenov, with conspiracy to commit money laundering, sanctions violations, and conspiracy to operate an unlicensed money-transmitting business.
Many users were outraged by the sanctions, but an appeal to lift the sanctions on Tornado was denied. While security breaches declined by a significant 51% in 2023 compared to 2022, funds crypto asset compromises remain a matter of great concern.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇳🇱 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Roman Semenov, Roman Storm |
| Companies | SlowMist, Tornado Cash, Office of Foreign Assets Control (OFAC), eXch, Lazarus Group |
| Currencies | Ethereum |
| Securities | None |
