Crypto mixer Tornado Cash finds itself in the crosshairs as the information about the 2021 DAO Maker Crypto Hack resurfaces in the media. According to Peckshield, $500,000 in Dai has been transferred through Tornado Cash.
Simply put, crypto mixers obscure the destination of the token making it more difficult to track. In August 2021, crypto fundraising platform DAO Maker suffered a DeFi hack in which it lost $7 million worth of ether and stablecoins.
Following the 2021 hack, the funds were sent to two wallets. One of these wallets sent around 3800 ether ($6.2 million) to Tornado Cash while the other wallet remains dormant to date, as per on-chain data.
The frequent connection between Tornado Cash alleged money laundering and illicit funds has prompted a debate about whether the mixer is guilty. Last month, US Treasury’s OFAC banned Tornado Cash, barring all US citizens and entities from interacting with it.
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