The volume of deposits into the OFAC-sanctioned cryptomixer Tornado Cash in the first six months of 2024 amounted to $1.85 billion. For comparison, for the whole of 2023 this figure was $1.28 billion
The demand for the service has increased against the backdrop of continued sanctions from the US Treasury and litigation involving its founders.
In August 2022, OFAC blacklisted Tornado Cash for its involvement in laundering criminal funds amounting to more than $7 billion. Over $455 million of this was associated with the activities of the North Korean hacker group Lazarus Group.
OFAC sanctions involve blacklisting everyone who interacts with the service. Regulatory exchanges are prohibited from accepting deposits from such wallets. This is not an obstacle for criminals trying to transfer illegally obtained funds into fiat.
According to Arkham Intelligence, the hacker behind the $100 million hack of the Poloniex exchange has deposited $76 million into the mixer since May. Deposits have also been made by attackers associated with the HECO Bridge and Orbit Chain exploits ($166 million and $48 million, respectively).
Previously, one of the confirmed addresses used in the $234.9 million WazirX hack was replenished through a transfer from Tornado Cash.
In August 2022, Dutch law enforcement officers arrested Tornado Cash developer Alexey Pertsev on suspicion of involvement in money laundering and concealing criminal financial flows through a cryptomixer. In April 2023, the court changed the preventive measure for him to house arrest.
On May 14, 2024, Pertsev was found guilty and sentenced to 64 months in prison. From that moment on he was imprisoned. On July 12, the developer was denied bail pending an appeal of the verdict in a $1.2 billion laundering case.
Similar charges have also been brought against the co-founders of Tornado Cash, Roman Storm and Roman Semenov.
The first one was released on bail; he refused to admit his guilt. Storm is awaiting trial in December. Semyonov remained free, but was subject to sanctions.
Since January 2024, the co-founders of Tornado Cash have been raising $1.5 million for lawyers. For these purposes, the JusticeDAO Foundation was created.
The initiative was supported by former NSA and CIA employee Edward Snowden, as well as members of the crypto community.
Let us remind you that Ethereum co-founder Vitalik Buterin donated 30 ETH to the legal defense fund for Pertsev and Storm.
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