Tornado Cash Laundered Over $552 Million in Stolen Cryptocurrency in 2024

According to a recent report, over $552 million in stolen cryptocurrency was laundered via the cryptocurrency mixing service Tornado Cash between January 1 and November 27, 2024. This staggering amount is part of a larger trend, with the majority of Tornado Cash’s funds originating from high-risk sources.

High-Risk Sources and Crypto Hacks

Tornado Cash received a total of 457,768 ETH, valued at around $1.64 billion at current prices, during this period. A significant 60% of these deposits originated from high-risk sources, including accounts linked to major crypto hacks. Over 56% of the total amount was linked to crypto hacks that occurred in 2023 and 2024.

The WazirX hack in July was the largest contributor this year, with the attacker funneling 61,698 ETH, worth around $217.2 million, through the mixing service. Funds from the Heco Bridge hack came second, with 52,281 ETH ($189.1 million) laundered. Other notable hacks include the Poloniex breach, which funneled 18,874 ETH ($68.4 million) through Tornado Cash, and the Orbit Chain exploit, which contributed 12,930 ETH ($46.8 million).

Regulatory Challenges and Implications

Tornado Cash was sanctioned by the U.S. Treasury in 2022 for its role in facilitating money laundering. The regulator alleged that since 2019, the service processed over $7 billion in illicit funds, including $455 million linked to North Korea’s Lazarus Group.

A recent U.S. Court ruling stated that the Treasury overstepped its authority by sanctioning some of Tornado Cash’s immutable smart contracts. This decision creates a “dangerous precedent” that could hinder global efforts to combat financial crime in the crypto space, allowing “bad actors to launder even larger amounts of cryptocurrency” as regulators face challenges enforcing compliance.

“The decision could also shake investor confidence and prompt regulators to impose stricter rules, which could mean legitimate businesses face heightened scrutiny and tighter reporting requirements.”

Key Takeaways

Here are some key points to consider:

  • Tornado Cash laundered over $552 million in stolen cryptocurrency in 2024.
  • 60% of Tornado Cash’s deposits originated from high-risk sources, including accounts linked to major crypto hacks.
  • The WazirX hack was the largest contributor, with 61,698 ETH ($217.2 million) laundered through the mixing service.
  • The recent U.S. Court ruling creates a “dangerous precedent” that could hinder global efforts to combat financial crime in the crypto space.

Stay up-to-date with the latest news and developments in the world of cryptocurrency and finance on Global Crypto News.

Post Views: 2