According to on-chain data, $15 million worth of Ether (4,600 ETH) stolen from Crypto.com in Singapore is currently being laundered through the Ether blender Tornado Cash.

  • Tornado Cash is an ETH hybrid protocol that promises to improve transaction privacy by hiding the on-chain link between the source and the recipient of the Ether.
  • The agreement was launched in early 2020.
  • On-chain data first discovered by security consulting firm Peck Shield suggests that 4,600 ethers are being sent in batches of 100 ethers through a blender.
  • While some say that blender protocols or cryptocurrency notchers are used to protect the privacy of activists or other political public figures, they are often used to launder the proceeds of organized crime.
  • In a previous statement to CoinDesk, the Financial Crimes Enforcement Network (FinCEN) said that hybrids like Tornado Cash may fall under the definition of money movers and therefore have “obligations” under the Bank Secrecy Act (BSA).
  • Law enforcement has previously shut down other blenders, such as Bestmixer, which was raided by EU authorities in 2019, and Helix, which was shut down by the FBI in 2021 for laundering dark web funds.
  • Tornado Cash co-founder Roman Storm previously told CoinDesk in an interview that the protocol works with regulators to mitigate their concerns. Tornado Cash V2 includes a cryptocurrency note in the history of ethereum transactions sent through its pipeline, which can be used to determine the source of funds.
  • “We’re in a little bit of a different position [than other mixer wallets]. I think it’s very important for us to be compliant,” Storm previously told CoinDesk. “We do what we think is right.”
  • According to CoinGecko, Tornado Cash’s TORN token rose nearly 9% to $33.31 during the Asian trading session.

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