Tornado Cash Cleans Over $800 Million in 2023 Despite Sanctions
Date: 2024-01-14 Author: Dima Zakharov Categories: BUSINESS
Tornado Cash: A Year of Controversy
In the year 2023, the cryptocurrency world witnessed a significant development as the controversial cryptocurrency mixer, Tornado Cash, managed to launder a staggering sum of over $800 million, based on current exchange rates. SlowMist analysts have highlighted Tornado Cash as one of the main culprits in the cryptocurrency space for the year.
Tornado Cash's Popularity Amid Sanctions
Despite facing sanctions from the United States as early as 2022, Tornado Cash continued to thrive. US authorities claimed that the service had laundered cryptocurrency worth $7 billion since 2019. However, recent reports from TRM Labs suggest an 85% reduction in the total volume passing through the mixer by the end of 2023.
Legal Battles and Resistance
In April, the US Treasury faced a lawsuit from six individuals with support from the cryptocurrency exchange Coinbase. They demanded the easing of sanctions against Tornado Cash, but their request was rejected by the court in August.
Lazarus Group Shifts Focus
In 2023, the Lazarus Group, a hacker organization backed by the North Korean government, shifted its focus. Instead of new hacks, they primarily laundered large sums of cryptocurrency stolen in 2022. Among the major hacks of the year were Atomic Wallet, Coinspaid, Alphapo, Stake.com, and CoinEx, resulting in an estimated $308 million in losses.
Overall Impact on the Cryptocurrency Industry
The activities of Lazarus Group and Tornado Cash in 2023 cost the cryptocurrency industry over $1.7 billion, as reported by TRM Labs. Interestingly, this was significantly lower than the $4 billion stolen the previous year, indicating a potential trend of reduced cybercriminal activity in the crypto space.
