Wallets linked to CoinStats recently moved nearly $1 million worth of Ether to controversial crypto mixing protocol Tornado Cash. Blockchain security firm CertiK noted that the two wallets associated with CoinStats' June security breach held a total of 311 ETH (worth approximately $959,000). CoinStats reported on June 22 that it received a security breach and a notification offering a misleading reward offer to its users.
Despite legal challenges and significant pressure, Tornado Cash is still widely used to launder stolen funds. In August 2022, the US Treasury Department banned the use of the service by US citizens, residents and companies. Tornado Cash developer Alexey Pertsev was arrested in Amsterdam on suspicion of involvement in money laundering through an Ethereum mixing service and was sentenced to 5 years and 4 months in prison last May. 🚨💰