A recent report by SlowMist, a blockchain security platform, provided new details about the Tornado Cash crypto controversy. Recently, the United States Department of the Treasury imposed heavy sanctions on the crypto mixer platform for facilitating alleged money laundering. The investigation by SlowMist revealed that hackers laundered nearly 75% of crypto stolen from the Ethereum blockchain through Tornado Cash.
Stolen crypto on Tornado Cash
Over 300,000 ETH stolen from the Ethereum network was laundered through Tornado Cash at some point, according to SlowMist. Hackers have used the platform to launder over $7 billion in stolen crypto since 2019. The Office of Foreign Asset Control sanctioned the platform on Aug 8 after multiple suspicious transactions. The platform is inaccessible to anyone in the United States, and Coin Base blocked transactions completely.
The report also revealed that the crypto stolen in the Ronin blockchain bridge hack made it through Tornado Cash. Blockchain interoperability is a contentious subject due to its vulnerability. Hackers stole over $600 million in crypto from Axie Infinity’s Ronin network in one fell swoop.
“Tornado Cash accounts for the bulk of the initial funding for these security incidents,” reads SlowMist’s report. “There have also been reports of withdrawals from exchanges, trading platforms, and personal wallets to fund these security incidents.”