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What is Tornado Cash, and why did it get into trouble?

cryptoweekly by cryptoweekly
May 7, 2025
in bitcoin, News
0

Tornado Cash is designed to make transactions private, but allegations of money laundering led to US sanctions, though they were lifted in March 2025.

Tornado Cash is a decentralized, non-custodial crypto mixer designed to enhance transaction privacy on public blockchains. It uses smart contracts and zero-knowledge (ZK) proofs to conceal the onchain link between the sender and receiver of a transaction.

Launched by Roman Storm and Roman Semenov on Ethereum in 2019, Tornado Cash allows users to send and receive cryptocurrency anonymously, without exposing their wallet history. Unlike centralized mixers, Tornado Cash operates entirely onchain through immutable smart contracts, meaning no central party controls the funds. 

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  • Bitcoin ’wrench attacks’ on track to double its worst year
  • SEC delays in-kind redemption decision for Bitwise crypto ETFs
  • XRP is about to hit $200B market cap for first time; price nears record
  • 60% of PUMP presale participants sold or transferred to CEXs
  • Is FOMO back? Bitcoin first timers buy 140K BTC in 2 weeks
  • Memecoin market cap grows 29% in July
  • 3 charts scream ‘It’s altcoin season’ as Bitcoin dominance hits 8-week lows

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