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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
  • Arizona governor signs law for state to keep unclaimed crypto
  • Bitcoin miner Core Scientific posts $580M Q1 profit but misses revenue estimates
  • Bitcoin returns to $98K as Fed holds rates steady despite Trump’s demand
  • Binance founder CZ asked Trump to pardon money laundering conviction
  • Stripe rolls out stablecoin accounts in over 100 countries
  • Binance's BNB Chain rebounds amid institutional, DeFi adoption
  • Ex-SafeMoon CEO claims innocence, blames founder as trial begins

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