2 years ago
The Fiscal Information and Investigation Service (FIOD) has confirmed that the arrested Tornado Cash developer was suspected of being progressive successful the hiding of transgression fiscal transactions and facilitating wealth laundering.
On Aug. 12, an unnamed developer was arrested successful the Netherlands successful transportation to Tornado Cash. A non-profit argumentation advocacy group, DeFi Fund Education reached retired to the authorization to corroborate the ground for the arrest.
In response, the FIOD stated that the developer was arrested for his engagement successful facilitating wealth laundering done the Tornado Cash protocol.
FIOD conscionable followed up with much accusation connected the Tornado Cash developer who was arrested past week.
We’ll support sending updates arsenic they travel in. https://t.co/FPu2wMvTSK pic.twitter.com/vpn2aBYRyZ
— Sam Canavos (@sccanavos) August 16, 2022
The bureau noted that its probe against the developer was autarkic of the US sanction. It nevertheless refused to sanction the arrested developer.
Tornado Cash connected the run
FIOD’s apprehension of the developer and the US authorisation has near the Tornado Cash ecosystem successful disarray.
Pressure from the authorisation forced the DAO to shut down operations connected Aug. 13.
In an exclusive study with CryptoSlate, a assemblage subordinate confirmed that the multi-sig was deleted aft DAO funds were moved to the governance contracts. Commenting connected wherefore the protocol had to instrumentality the route, the Tornado Cash subordinate stated:
“To support members harmless and debar ineligible issues” arsenic the concern is “dangerous for each devs,” adjacent those extracurricular the Tornado Cash ecosystem.
No going backmost for the US Treasury
The US Treasury had earlier stated it would pursue aft each crypto mixing protocols with nary Know Your Customer (KYC) modalities. Crypto mixing protocols by plan are decentralized, making it hard to instrumentality a KYC model.
The US Treasury believes that unregulated mixers successful the crypto manufacture volition undermine the nationalist information of the U.S. and is aggressively sanctioning protocols suspected of facilitating illicit funds.
“[The] Treasury volition proceed to analyse the usage of mixers for illicit purposes and usage its authorities to respond to illicit financing risks successful the virtual currency ecosystem.”
The station Dutch Authority says arrested Tornado Cash developer suspected of engagement successful fiscal crimes appeared archetypal connected CryptoSlate.
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