A Netherlands-based Tornado Cash Developer was alleged for concealing the money laundering activities on the Crypto Mixer Tornado Cash.
Tornado Cash is a famous Cryptocurrency platform that is deployed on Ethereum Blockchain. On the last day, there was a significant price drop as Alexey Pertsev (A Tornado Cash Developer) got arrested in the Netherlands.
Tornado Cash Developer Was Arrested, Tornado Cash Token Falls
The TORN token price has plummeted 16% in the last day and is trading at USD 14. The decline in the price touched an all-time low of USD 13 on the weekend.
Amid the rise in the price of Bitcoin above USD 24k and Eth above USD 1900, there is huge resistance seen in the price analysis of the TORN token.
- A tornado Cash Developer was recently Arrested on Friday in the Netherlands.
- TRON slid away soon after the US imposed sanctions earlier this week.
- The US treasury had probed the Tornado Cash Earlier this work.
Tornado Cash Developer Is Arrested
On Friday, August 12, 2022, Dutch authorities confirmed the arrest of a Tornado Cash Protocol creator. The US Agency had already sanctioned Tornado Cash for money laundering and cybercrime.
It came to light when hackers used Tornado cash to transfer funds stolen from Nomad Bridge and Harmony bridge worth USD 7.8 Million and USD 96 Million, respectively.
The FIOD said the 29-year-old Developer was part of a broader organization promoting cryptocurrency privacy solutions. The FIOD suspects him of hiding illicit actions like money laundering and financial transfers through Cryptocurrency mixing.
Many in the cryptocurrency world have called his detention unjustified. Jake Chervinsky (Head of Policy – Blockchain Association) has made an argument that there are a lot of platforms that criminals use, which are also used by law-abiding citizens. So why is the limelight put on only Crypto Mixer platform Tornado Cash?
Currently, the Discord Server and DAO website are currently down from Tornado Cash.
Tornado Cash Slapped With Sanctions
On Monday last week, the US Government sanctioned a tornado case mentioned before. Tornado cash has failed to put effective controls to stop criminal activities like money laundering and various malicious cyber attacks.
Recently Brian Nelson (Undersecretary of Treasury of Terrorism and Financial Intelligence) said that there would be more aggressive actions taken by the treasury against the crypto mixers, which led money laundering like criminal activities to happen.
One of the users based in North Korea has used Tornado cash to transfer USD 620 Million worth of Cryptocurrencies stolen and laundered. The user is Lazarus Group, which was sanctioned in 2019 as it was held for a heist they conducted.