Yahya 
Despite constant restrictions and legal issues for its creators, banned crypto mixer Tornado Cash has seen a startling rise in deposit volume in the first half of 2024.
Significant Uptick in Deposits
According to Flipside Crypto data, within the first six months of 2024 Tornado Cash received $1.9 billion in deposits. This is a notable 50% rise over the whole 2023 total deposits.
Sanctions and Legal Strife
After it was found that the North Korean hacker outfit Lazarus outfit used the protocol to launder around $455 million in illegal money, Tornado Cash was sanctioned by the Office of Foreign Assets Control (OFAC) in August 2022. The sanctions ban any wallet that uses Tornado Cash, therefore making it difficult to withdraw crypto into fiat money on licenced exchanges.
Continued Use by Hackers
Large hacking organizations trying to hide their illegal activity still find Tornado Cash appealing despite these penalties. According to data from blockchain analytics company Arkham Intelligence, since May the hacker behind the $100 million Poloniex exchange vulnerability moved $76 million to Tornado Cash. Furthermore, the companies behind the HECO Bridge and Orbit Chain used shifted $166 million and $48 million respectively to the mixer in the first half of the year.
More recently, Tornado Cash financed one of the wallets engaged in the $235 million heist of Indian crypto exchange WazirX on July 18.
Legal Challenges Against Sanctions
By means of an ongoing litigation, many crypto industry leaders and advocacy groups—including Coinbase, The Blockchain Association, and Coin Center—have contested the penalties against Tornado Cash The plaintiffs contend that as Tornado Cash is an anonymous mixing service and cannot be regarded as a nation or person, restricting it violates US Constitution free speech rights and the fines are “unlawful and unconstitutional.”
The US Treasury argues, however, that crypto mixers endanger national security and that Tornado Cash neglected policies meant to stop money laundering.
The creators of Tornado Cash have faced major legal difficulties. Following his conviction of money laundering in 2023 Alexey Pertsev was sentenced to five years and four months in Dutch prison. Roman Storm entered not guilty after being detained in the United States on comparable allegations. Released on a $2 million bail, he sought a petition to dismiss all charges in March. Roman Semenov, the third co-founder, is still elusive.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.