Over half a billion in crypto loot laundered via Tornado Cash in 2024: report

  crypto.news 28 November 2024 11:12, UTC

More than 60% of ETH deposits to Tornado Cash in 2024 originated from high-risk sources, including accounts linked to major crypto hacks.

According to a Global Ledger report shared with crypto.news, over $552 million in stolen cryptocurrency was laundered via cryptocurrency mixing service Tornado Cash between Jan.1 and Nov. 27.

Tornado Cash received a total of 457,768 ETH, valued at around $1.64 billion at current prices, during this period. The majority of these funds came from high-risk sources, and over 56% of the total amount was linked to crypto hacks that occurred in 2023 and 2024.

This is a noticeable jump from 2023, when Tornado Cash handled 314,740 ETH in withdrawals.

The WazirX hack in July was the largest contributor this year, with the attacker funneling 61,698 ETH, worth around $217.2 million, through the mixing service.

Funds from the Heco Bridge hack came second, with 52,281 ETH ($189.1 million) laundered. The hack originally transpired in 2023, but the attacker laundered the funds in March this year.

You might also like: Tornado Cash smart contracts cleared of OFAC sanctions in latest ruling

Similarly, hackers behind the Poloniex breach funneled 18,874 ETH ($68.4 million) through Tornado Cash. Meanwhile, 12,930 ETH ($46.8 million) came from the Orbit Chain exploit.

Lastly, the Penpie exploit added 11,261 ETH, worth $40.8 million, to the mixer’s illicit transactions.

Tornado Cash was sanctioned by the U.S. Treasury in 2022 for its role in facilitating money laundering. The regulator alleged that since 2019, the service processed over $7 billion in illicit funds, including $455 million linked to North Korea’s Lazarus Group.

Recently, a U.S. Court ruled that the Treasury overstepped its authority by sanctioning some of Tornado Cash’s immutable smart contracts.

The Global Ledger report warned that this ruling creates a “dangerous precedent” that could hinder global efforts to combat financial crime in the crypto space, stating that “bad actors may launder even larger amounts of cryptocurrency” as regulators face challenges enforcing compliance.

The decision could also shake investor confidence and prompt regulators to impose stricter rules, “which could mean legitimate businesses face heightened scrutiny and tighter reporting requirements,” the report added.

Read more: Tornado Cash ruling lays dangerous precedent: crypto lawyers

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