Sanctions targeted at decentralized crypto mixer Tornado Cash weren’t able to totally cut off its use, though it has hamstrung the service, a blockchain analytics firm has shared.On Aug. 8, the Office of Foreign Assets Control (OFAC)revealed sanctions versus the crypto mixer for its supposed role in the laundering of criminal activity proceeds.In a report published on Jan. 9, Chainalysis said the sanctions

did have some result, triggering total inflows to the mixer to visit 68%in the 30 days after the sanctions entered force. 1/ The first section preview of our 2023 Crypto Crime Report is here, and it’s all


the example of darknet marketplace Hydra, which on the other hand, saw its cryptocurrency inflows drop to zero after German cops took its servers as an outcome of sanctions.Chainalysis described that while sanctions applied to Tornado Cash saw its”front-end site taken down, its smart agreements can run indefinitely, implying anybody can still technically utilize it at any time.”Chainalysis continued: “That recommends sanctions versus decentralized services act more as a tool to disincentivize the service’s use rather than cutting off use totally.”OFAC came down hard on Tornado Cash in August due to concerns that individuals and groups had allegedly used the mixer to launder billions worth of crypto since 2019, including the$455 million stolen by the North Korea-affiliated Lazarus Group. The company then changed those sanctions in November as it cracked down on the platform even further for: “making it possible for malicious cyber activities, which eventually support the [North Korea weapons of mass destruction] program.” Cast your vote now!In its newest report, Chainalsis’research study suggested that illicit usage of Tornado Cash was primarily connected to crypto hacks and frauds, with a rough average of 34

%of all inflows being attributed to having originated from such. While the sanctions might not stop the mixer entirely, it did effectively work to alarm people away from utilizing that platform, with overall inflows coming by 68 %in the following month.

Specific figures are not provided, however the chart shows that everyday inflows were at times hitting almost$25 million daily in the 30 days prior to the sanctions, and then subsequently dropped under $5 million daily in the consequences. Before and after inflows for approved platforms. Source: Chainalysis”Those incentives appear to have actually been effective, as its inflows fell 68%in the 30 days following its designation. That’s specifically important here considered that Tornado Cash is a mixer, and mixers become less reliable for cash washing the less funds they receive in general,”the report reads. Related: DeFi security losses rose 47.4%in

2022 to hit$3.64 B: Report This week, a different report from blockchain security firm SlowMist likewise provided some indicators about the type of money that streamed through Tornado Cash in 2022. According to the company’s research, 1,233,129 Ether(ETH)worth$ 1.62 billion was transferred into the platform in 2015, with1,283,186 ETH worth$1.7 billion took out.3/ TornadoCash: In 2022

, users deposited an overall of 1,233,129 ETH to it and withdrew 1,283,186 ETH from it.ChipMixer: In 2022, users transferred an overall of 40,065.33 BTC to it and withdrew 22,582.44 BTC from it.View the full PDF report for additional information. pic.twitter.com/ib2KnnpN9b!.?.!— SlowMist (@SlowMist_Team )January 9, 2023