Economy

Netherlands detains alleged developer of cryptocurrency mixer Tornado Cash

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Dutch authorities said on Friday they had arrested a 29-year-old man believed to be a developer of the cryptocurrency mixing service Tornado Cash, which the United States added to its sanctions list this week.

The US sanctions announced on Monday followed allegations that Tornado Cash helps hide billions in capital flows, including to North Korean hackers.

By mixing cryptocurrencies, the online service allows you to hide the origin or destination of digital payments. Tornado Cash is one of the biggest cryptocurrency mixers identified as problematic by the US Treasury.

The Dutch Prosecutor’s Office for Serious Fraud, Environmental Crimes and Asset Forfeiture said Tornado is suspected of laundering more than $7 billion in virtual currencies since it was created in 2019.

The company did not respond to a request for comment.

The arrested man is believed to have helped facilitate criminal transactions, including “funds stolen through hacking by a group believed to be associated with North Korea”. He faces money laundering charges.

Other arrests have not been ruled out, prosecutors said.

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