The Fiscal Information and Investigation Service (FIOD) of the Netherlands mentioned it arrested a 29-year-old man in Amsterdam on suspicion of “concealing felony monetary flows” and “facilitating cash laundering” by crypto mixing service Tornado Cash.
The suspect is introduced earlier than the analyzing decide and “a number of arrests usually are not dominated out,” the FIOD mentioned.
As reported, this week, Tornado Cash was positioned by the US authorities on the OFAC sanctions checklist.
The FIOD added that this service and the Financial Advanced Cyber Team (FACT) began a felony investigation towards Tornado Cash this previous June.
“It is suspected that individuals behind this group have made large-scale income,” the FIOD added.
Tornado Cash is a digital foreign money mixer that operates on the Ethereum (ETH) blockchain and facilitates nameless transactions by obfuscating their origin, vacation spot, and counterparties, thus rising privateness of its customers. Tornado mixes transactions earlier than transmitting them to their particular person recipients.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) claims that Tornado Cash has been used to launder greater than USD 7bn price of digital foreign money since its creation in 2019.
Meanwhile, US-based blockchain evaluation firm Chainalysis argued that, since changing into energetic in August 2019, Tornado Cash has obtained over USD 7.6bn price of ETH, “a large portion of which have come from illicit or high-risk sources.”
Per their report,
“Half of these funds got here from DeFi protocols, however 18% got here from sanctioned entities (nearly solely, we should always word, earlier than these entities have been sanctioned), whereas just below 11% have been funds stolen from different cryptocurrency providers and protocols.”
Compiled by Coinbold