March 27, 2024
Tornado Cash Processes Over $77 Million in the Last 30 Days, Despite Sanctions: Arkham
Latest Cryptocurrency News

Tornado Cash Processes Over $77 Million in the Last 30 Days, Despite Sanctions: Arkham

According to the blockchain intelligence firm Arkham, assets totaling $77.35 million have traversed Tornado Cash’s contracts on the Ethereum mainnet in the past month.

Even though the US Treasury Department imposed sanctions in August 2022, Tornado Cash continues to be the largest cryptocurrency mixer operating on the Ethereum network. The US authorities alleged that Tornado Cash was being used by the North Korean hacker group Lazarus Group to launder millions of dollars in cryptocurrency.

Tornado Cash’s developers, Roman Storm and Roman Semenov, are currently facing allegations related to money laundering and sanctions violations.

Tornado Cash Sees a 60% Decline in Assets Since Sanctions

Arkham’s data shows that Tornado Cash’s assets saw a significant drop of over 60%, and transfer volume declined considerably after the sanctions were imposed by US regulators in August the previous year.

However, both the total value locked (TVL) and transfer volume experienced some recovery. The current TVL for Tornado Cash stands at $118.3K ETH, equivalent to $187.9 million. Tornado Cash operates across seven different blockchain networks and offers privacy features for transactions involving ten different cryptocurrencies.

The most frequently mixed asset on the platform is native ETH on the Ethereum Mainnet. At its peak in July 2021, Tornado Cash held over $700 million worth of ETH in its pool contracts.

Hackers Continue to Exploit Tornado Cash for Money Laundering

Tornado Cash has been utilized by the Lazarus Group, associated with the DPRK, to launder funds stolen from Sky Mavis’s Ronin Bridge. Hackers employ Tornado Cash to legitimize the source of their funds by erasing connections to hacked wallets or illicit crypto activities, making it a target for authorities worldwide.

As reported by Arkham, nearly all major multi-million-dollar cryptocurrency hacks have used Tornado Cash to launder the proceeds. In the past, a lawsuit backed by Coinbase against the US Treasury Department aimed to overturn the ban on the cryptocurrency mixer, arguing that it infringed upon free speech rights, given that Tornado Cash is open-source software. Nevertheless, the court ruled in favor of the United States Department of the Treasury.

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