Key Takeaways:
- Tornado Cash saw a $1.9 billion surge in deposits in H1 2024, a 50% increase from 2023, despite sanctions and legal issues.
- The service is still favored by hacking groups for funneling significant funds from exploits.
- Legal challenges claim sanctions are unconstitutional, with support from major crypto firms and advocacy groups.
Tornado Cash, an OFAC-sanctioned crypto mixer, saw a surprising $1.9 billion surge in deposits in the first half of 2024, a 50% increase from 2023, despite ongoing sanctions and legal issues for its founders.
The service remains popular among hacking groups, with significant funds from various exploits being funneled through it.
Tornado Cash, the crypto mixer of choice for digital money laundering, has seen an uptick in activity despite being slapped with US sanctions two years ago, @SidCoins writes https://t.co/KN0HIgEcWy
— Bloomberg Crypto (@crypto) July 18, 2024
Sanctions label anyone interacting with Tornado Cash, placing them on a blacklist and hindering their ability to convert crypto to fiat through centralized exchanges.
Legal challenges against the sanctions argue they are unconstitutional, backed by major crypto firms and advocacy groups.
The US Treasury maintains that crypto mixers pose a national security threat.
Tornado Cash’s founders face severe legal consequences, with one imprisoned, another released on bond and seeking to dismiss charges, and the third still at large.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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