Suspected Tornado Cash developer arrested in Amsterdam
It has been alleged that Tornado Cash was helping conceal billions in capital flows, including for North Korean hackers
12 August 2022 - 15:43
by Anthony Deutsch
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Amsterdam — Dutch authorities said on Friday they had arrested a 29-year-old man believed to be a developer for the crypto mixing service Tornado Cash, which the US put on its sanctions list this week.
The US sanctions announced on Monday followed allegations that Tornado Cash was helping conceal billions in capital flows, including for North Korean hackers.
By mixing cryptocurrencies, the online service makes it possible to conceal the origin or destination of digital payments, increasing their anonymity.
Tornado Cash is one of the largest crypto blenders identified as problematic by the US Treasury.
The Dutch public prosecutor’s office for serious fraud, environmental crime and asset confiscation (FIOD) said Tornado was suspected of having laundered more than $7bn worth of virtual currency since it was created in 2019.
Tornado Cash did not reply to a request for comment.
The FIOD said the man, who was not identified, was arrested in Amsterdam on Wednesday. He is believed to have helped facilitate criminal transactions, including “funds stolen through hacks by a group believed to be associated with North Korea.” He faces money laundering charges.
In June the Financial Advanced Cyber Team division of the FIOD started an criminal investigation into Tornado Cash, the statement said. It found Tornado Cash had been used to conceal large-scale criminal money flows, including from (online) thefts of cryptocurrencies.
Further arrests have not been ruled out, prosecutors said.
Monday’s move froze any US assets of the crypto mixer and generally bars Americans from dealing with it.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Suspected Tornado Cash developer arrested in Amsterdam
It has been alleged that Tornado Cash was helping conceal billions in capital flows, including for North Korean hackers
Amsterdam — Dutch authorities said on Friday they had arrested a 29-year-old man believed to be a developer for the crypto mixing service Tornado Cash, which the US put on its sanctions list this week.
The US sanctions announced on Monday followed allegations that Tornado Cash was helping conceal billions in capital flows, including for North Korean hackers.
By mixing cryptocurrencies, the online service makes it possible to conceal the origin or destination of digital payments, increasing their anonymity.
Tornado Cash is one of the largest crypto blenders identified as problematic by the US Treasury.
The Dutch public prosecutor’s office for serious fraud, environmental crime and asset confiscation (FIOD) said Tornado was suspected of having laundered more than $7bn worth of virtual currency since it was created in 2019.
Tornado Cash did not reply to a request for comment.
The FIOD said the man, who was not identified, was arrested in Amsterdam on Wednesday. He is believed to have helped facilitate criminal transactions, including “funds stolen through hacks by a group believed to be associated with North Korea.” He faces money laundering charges.
In June the Financial Advanced Cyber Team division of the FIOD started an criminal investigation into Tornado Cash, the statement said. It found Tornado Cash had been used to conceal large-scale criminal money flows, including from (online) thefts of cryptocurrencies.
Further arrests have not been ruled out, prosecutors said.
Monday’s move froze any US assets of the crypto mixer and generally bars Americans from dealing with it.
Reuters
Suspected Tornado Cash developer arrested in Amsterdam
KATE THOMPSON DAVY: Finding fact and fiction in TikTok fears and China’s tech crackdown
TOBY SHAPSHAK: A reckoning finally arrives for crypto scams
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
WATCH: Bitcoin posts double digit gains in July
The crypto collapse has flooded the market with Rolex and Patek
BIG READ: What Putin really wants is the return of an empire
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.