According to a Global Ledger report, more than 60% of ETH deposits to Tornado Cash in 2024 originated from high-risk sources. Highlighting the mixer’s role in laundering funds, significant amounts are linked to crypto hacks.
Overview of Global Ledger Report
According to the report provided to crypto.news, more than $552 million in stolen cryptocurrency was laundered via Tornado Cash between January 1 and November 27. Tornado Cash received a total of 457,768 ETH, valued at approximately $1.64 billion at the time of publication. The majority of these funds came from high-risk sources, with over 56% of the total connected to crypto hacks in 2023 and 2024.
Major Crypto Hacks of 2024
The WazirX hack in July was a significant contributor in 2024, with the attacker funneling 61,698 ETH (approximately $217.2 million) through the mixer. The Heco Bridge hack, originating in 2023, allowed the attacker to launder 52,281 ETH (approximately $189.1 million) in March 2024 through Tornado Cash. Similarly, hackers from the Poloniex breach funneled 18,874 ETH ($68.4 million), and the Orbit Chain exploit added 12,930 ETH ($46.8 million). Lastly, the Penpie exploit contributed 11,261 ETH, worth $40.8 million, to Tornado Cash’s illicit transactions.
Consequences and Future Regulations
Tornado Cash was sanctioned by the U.S. Treasury in 2022 for its role in facilitating money laundering. Recently, a U.S. court ruled that sanctions against some of Tornado Cash’s immutable smart contracts were inappropriate, potentially creating a dangerous precedent that hinders global efforts to combat financial crime in the crypto space. This decision could also affect investor confidence and encourage regulators to impose stricter rules.
The current situation with Tornado Cash underscores the complexity of combating money laundering in the crypto space, requiring developers and regulators to balance financial anonymity with the need to prevent criminal activities.
