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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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Recent Posts
  • SEC approves conversion of Grayscale's large-cap crypto fund into ETF
  • SOL ETF news gain evaporates, while chart warns of another 20% drop
  • Bitcoin at risk of deeper drop as BTC slips below key support levels
  • US regulator considers simplified path to market for crypto ETFs
  • Connecticut governor approves law prohibiting crypto use in government
  • Bitcoin analysts say market quickly absorbs selling, paving way for a bullish July
  • Connecticut Governor signs bill banning public officers from using BTC and other crypto assets

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