In an intriguing turn of events, a surprising $77.35 million worth of assets have reportedly circulated via Tornado Cash’s contracts on Ethereum mainnet over the last month, according to acclaimed blockchain intelligence firm, Arkham. Although demonstrating a standing testament to the endurance of the crypto world, this astounding figure is despite Tornado Cash facing sanctions by the US Treasury Department in August 2022.
Notably, the US allegations on Tornado Cash pertain to its utility by the North Korean hacker group, Lazarus Group, for money laundering. These allegations paint a rather bleak backdrop for Roman Storm and Roman Semenov, the developers of Tornado Cash who are currently shouldering money laundering and sanctions violations.
Following the US sanctions, Tornado Cash witnessed a considerable slump, with assets falling by over 60%, and the transfer volume declining significantly. Nonetheless, the total volume locked (TVL) and transfer volume recovered to some extent later on, bolstering the conviction of the crypto community. In the present scenario, Tornado’s current TVL stands strong at $118.3K ETH, approximately worth $187.9 million.
Operating across seven different chains, Tornado Cash holds an extensive reach. Furthermore, it obfuscates transfers of 10 distinct cryptocurrencies. The expansive scope, coupled with the intricate functionality of the platform, allows its use for hiding traces of crypto funds that have been acquired illegitimately.
Continuing to court controversy, Tornado Cash was recently linked with the Lazarus Group again for money laundering. The manipulation of Tornado Cash’s obfuscation feature for the purpose of legitimizing hacked wallet funds or illicit crypto activities has spurred concerns worldwide. According to reports from Arkham, Tornado Cash has been utilized in almost all major multi-million dollar crypto hacks.
Regulations should protect rather than restrict, a notion echoed by a Coinbase-backed lawsuit against the US Treasury Department, which challenged the ban on the crypto mixer over violation of free speech as Tornado Cash is an open-source software. Although struck down by the court, favouring the US Department of the Treasury instead, the question it brings to the forefront is whether the regulatory framework should adapt to the dynamic nuances of the crypto world or continue to hold it in a vice-like grip, potentially throttling innovation.
Source: Cryptonews
