The Fiscal Information and Investigation Service (FIOD) of the Netherlands communicated that it arrested a 29-year-old man in Amsterdam on suspicion of concealing criminal financial flows and enabling money laundering through the crypto mixing service Tornado Cash.
The suspect is brought before the examining judge and multiple arrests are not ruled out, the FIOD conveyed.
As reported by NFTHi this week, Tornado Cash was identified by the US government on the OFAC sanctions list.
The FIOD added that this service and the Financial Advanced Cyber Team (FACT) started a criminal investigation against Tornado Cash this past June.
“It is suspected that persons behind this organization have made large-scale profits,” the FIOD added.
The FACT suspects that through Tornado Cash, criminal money flows have been hidden on a large scale. These also include online thefts of cryptocurrencies and so-called crypto hacks and scams. In addition, the funds stolen in hacks by a group are believed to be related to North Korea.
Tornado Cash went online in 2019 and has since earned sales of at least $7 billion, according to FACT. Research displayed that at least one billion dollars worth of cryptocurrencies with a criminal origin went via the mixer. It is inferred that the persons behind this organization have made enormous profits from these transactions.
Tornado Cash is a virtual currency mixer that functions on the Ethereum (ETH) blockchain and facilitates anonymous transactions by obscuring their origin, destination, and counterparties, thus increasing the privacy of its users. Tornado mixes transactions before transmitting them to their respective recipients.
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