Tornado Cash Under Scrutiny: $552 Million in Stolen Crypto Laundered
According to a report by Global Ledger, shared with crypto.news, over $552 million in stolen cryptocurrency was laundered through the Tornado Cash mixing service between January 1 and November 27, 2024. During this period, the platform processed a total of 457,768 ETH, valued at approximately $1.64 billion at current market prices.
Hacked Funds as the Main Source of Deposits
More than 60% of ETH deposits into Tornado Cash originated from high-risk sources, particularly accounts linked to major crypto hacks. Over 56% of the total volume was tied to attacks that occurred in 2023 and 2024. This marks a significant increase compared to 2023, when Tornado Cash processed 314,740 ETH.
Major Hacks of 2024
WazirX Hack: In July, attackers laundered 61,698 ETH, worth approximately $217.2 million, through Tornado Cash.
Heco Bridge Exploit: This attack saw 52,281 ETH ($189.1 million) laundered in March.
Poloniex Hack: Hackers funneled 18,874 ETH ($68.4 million) through Tornado Cash.
Orbit Chain Exploit: The platform processed 12,930 ETH ($46.8 million) tied to this incident.
Penpie Exploit: Added 11,261 ETH, worth $40.8 million, to the mixer’s illicit transactions.
Sanctions on Tornado Cash and Legal Challenges
Tornado Cash was sanctioned by the U.S. Treasury Department in 2022 for its role in facilitating money laundering. The regulator claimed that since 2019, the platform had processed over $7 billion in illicit funds, including $455 million linked to the North Korean hacking group Lazarus.
However, a recent U.S. court ruling found that the Treasury overstepped its authority by sanctioning certain immutable smart contracts of Tornado Cash.
Implications for Global Regulations and the Crypto Market
The Global Ledger report warned that this ruling could create a "dangerous precedent" hindering global efforts to combat financial crime in the crypto space. The report suggests that bad actors might launder even larger volumes of cryptocurrency, making it harder for regulators to enforce compliance.
The decision could also shake investor confidence and push regulators to introduce stricter rules, potentially burdening legitimate businesses with increased scrutiny and reporting requirements.
Tornado Cash remains a focal point in the ongoing debate over crypto regulation, highlighting the tension between fostering innovation and preventing financial crime.
#TornadoCash , #hackers , #CryptoNewss , #aml , #cryptoregulation
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
