- Tornado Cash received a significant influx, with $1.9 billion in deposits during the first half of 2024, marking a 50% increase from 2023.
- The US Office of Foreign Assets Control sanctioned Tornado Cash in August 2022 for allegedly aiding North Korean money laundering activities.
- A lawsuit supported by major crypto organizations challenges the sanctions against Tornado Cash, arguing they infringe on free speech rights.
In the first half of 2024, Tornado Cash saw a significant increase in deposits despite strict penalties and continuous legal problems. Flipside Crypto’s data indicates that during this period, the crypto mixer attracted roughly $1.9 billion, a half-increase over the whole previous year.
Moreover, this surge also coincides with difficulties, including the August 2022 Office of Foreign Assets Control (OFAC) sanctions. These mostly resulted from claims of North Korea’s Lazarus Group using the platform to launder almost $455 million.
Legal Challenges Escalate
Several crypto experts started a lawsuit claiming that these penalties violate free speech protections under the U.S. Constitution in response, claiming Well-known crypto companies including Coinbase and The Blockchain Association have backed this lawsuit. They argue that, being a distributed platform, Tornado Cash shouldn’t be regarded as a conventional company.
Furthermore, challenging the founders of Tornado Cash’s legal environment, one of the co-founders, Alexey Pertsev, was recently denied bail. His charges concerned using the mixer to enable money laundering.
Founders Face Continued Legal Pressure
Another co-founder, Roman Storm, was taken under custody in the United States on allegations pertaining to the same problems. He was freed on a $2 million bond following his August arrest and has subsequently entered not guilty. In March he also submitted a motion to dismiss all charges leveled against him.
Another co-founder, Roman Storm, was taken under custody in the United States on allegations pertaining to the same problems. Authorities are looking for him aggressively since Tornado Cash is also involved in the sanctions and legal actions executed against them.
Despite the heavy scrutiny and the various legal battles, Tornado Cash’s increased activity highlights the persistent use and controversial nature of crypto mixers. These developments indicate the ongoing tension between regulatory efforts and the decentralized aspects of cryptocurrency technologies.
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