A recent update revealed that a 29 years old man has been arrested on Wednesday. The identity of the man is still unknown as the Dutch police took him as a suspect working as a developer for Tornado Cash.
According to the Dutch Fiscal Information and Investigation Service:
He is suspected of involvement in concealing criminal financial flows and facilitating money laundering through the mixing of cryptocurrencies via the decentralized Ethereum mixing service Tornado Cash,
The Dutch information and investigation service are also known as the FIOD, the service that interrogates serious fraud and another financial laundering in the Netherland. Dutch investigators suspect $7 billion has been moved through Tornado Cash, since its inception in August 2019. They suspect at least $1 billion of the funds had criminal ties.
The FIOD’s investigation on Tornado Cash started in June, and allegedly accused the Tornado Cash service of its failure to secure against cryptocurrency-facilitated money laundering at the moment, the investigation is still on as stated by FIOD.
Howbeit, the proponents of Tornado Cash which include Ethereum’s Vitalik Buterin, said the service was created for anonymous donation and gave an instance of the donation to aid Ukraine in the ongoing war against the region.
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At the inception of the service, it was in no way illegal but basically for the anonymous transaction. But governments are increasingly probing services that fail to enforce anti-money laundering and “know your customer” practices designed to deter criminal use of the service.
Almost $7.6 Billion Has Been Moved Through Tornado Cash
Unfortunately, “Since the launch of Tornado Cash in August 2019, Tornado Cash has received over $7.6 billion worth of Ethereum, a sizable portion of which have come from illicit or high-risk sources,” Chainalysis reports.
Following the arrest of the 29 years old suspect by the Dutch police, the U.S Department of the Treasury declared that all the Tornado Cash be frozen on the 8th of August. More also, the US department included Tornado Cash in the list of sanctioned entities maintained by the Department’s Office of Foreign Assets Control.
Despite The US Sanctioning, Tornado Cash Is Still Accessible
Despite the sanctioning, Tornado Cash remain accessible, although it was reported on many users said they find it hard to access
The reason for the continuous accessibility of Tornado Cash was stated by reports blockchain security firm SlowMist, it says when the users submit Ethereum to the service, they trigger a smart contract. “These smart contracts act as a pool that mixes all the deposited assets and generates a private key proving that you performed the deposit operation,”
Also, the Chainalysis stated:
Because Tornado Cash can technically continue to run, regulators and crypto compliance teams must stay vigilant to ensure the platforms they’re responsible for don’t transact with the now-sanctioned mixer,
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