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Dutch detain suspected developer of crypto mixer Tornado Cash

Jimmy Khan

Aug 15, 2022 14:31

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On Friday, Dutch officials announced the arrest of a 29-year-old man who is thought to be a developer for Tornado Cash, a cryptocurrency mixing service that the United States added to its list of entities subject to penalties this week.


Following charges that Tornado Cash was aiding in the concealment of billions in money movements, including those for North Korean hackers, the United States issued penalties on Monday.


The web solution enables concealment of the origin or destination of digital payments, therefore enhancing their anonymity.


One of the biggest cryptocurrency blending platforms that the U.S. Treasury has flagged as worrisome is Tornado Cash.


Tornado is believed to have laundered more than $7 billion in virtual currency since its creation in 2019, according to the Dutch Public Prosecutor's Office for Serious Fraud, Environmental Crime, and Asset Confiscation (FIOD).


When contacted for comment, Tornado Cash did not respond.


The unnamed guy, according to the FIOD, was detained on Wednesday in Amsterdam. He is suspected of having assisted in the facilitation of illegal activities, including "funds taken via hackers by a group thought to be affiliated with North Korea." He is accused of money laundering.


An inquiry into Tornado Cash was launched by the Financial Advanced Cyber Team branch of the FIOD in June, according to the statement. It was discovered that Tornado Cash has been used to hide significant illegal financial flows, particularly those resulting from online cryptocurrency thefts.

Prosecutors said that more arrests are not out of the question.


The action taken on Monday effectively banned Americans from engaging with the cryptocurrency mixer and frozen all U.S. assets of it.

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