A report by the EU's Innovation Center highlights that privacy coins, mixers, and Layer 2 solutions complicate law enforcement's ability to trace funds. It advises agencies to prepare for these tools' use in investigations. Recently, a Dutch court sentenced Tornado Cash developer Alexey Pertsev to over five years in prison for creating the platform for money laundering. The report also notes potential misuse of second-layer solutions like the Lightning Network by criminals.

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