News22 September 2022

Tornado Cash left a niche empty, someone will eventually fill it, opinion of Chainalysis chief scientist


Sanctions against Tornado Cash have forced it to leave a niche. However, the holy place is not empty. The "smaller mixers" sleep and see how they will take the position of the top 1 cryptocurrency mixer worldwide.

Banning everyone's painfully famous crypto mixer has never put this niche in question. On the contrary, a giant vacuum is left in this field, a gap that needs to be filled because of the market's desires. In particular, people are unwilling to disclose the quantity and origin of their crypto.

Chainalysis chief scientist, Jacob Illum, noted that there are many who he calls "junior mixers" who want to capitalize on the void left by Tornado Cash.

An August report from SlowMist, a blockchain security company, said that 74.6 percent of stolen funds on the Ethereum network were transferred to Tornado Cash in the first half of 2022, which amounts to more than 300,000 Ether (ETH), about $380 million.

On the one hand, yes, you can cower in a corner, tear your hair out and yell what a universal evil Tornado is after all, and it should be banned, killed, imprisoned (no) :D. 

But on the other hand, it appeared only as the market's desire to simplify the procedure of anonymizing its finances. And the fact that criminals used it doesn't make it any worse. After all, criminals buy bread at the exact same store as you do. That doesn't make you or the store wrong.

Even before that, criminals coped very well with hiding and laundering money through pocket banks, offshore companies, and leads.

The crypto mixers remove the need for black accounting and corruption in the financial sector, which a law-abiding person would not use. And the result is that the average person can't hide his funds from constant oversight, and the criminal will simply revert to less convenient methods...

We just lead to the fact that is closing the mixers blocked the freedom of privacy for ordinary people. If so unscrupulous hacker has the skill to hack Defy Bridge, so with the laundering, he certainly can do it : D.


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