Dutch police have detained the alleged developer of the Tornado Cash mixer. The investigation is being conducted by the State Attorney’s Office for Fraud, Environmental Crime and Asset Forfeiture.
The Dutch Police (FIOD) have arrested a 29-year-old man in Amsterdam who is suspected of developing the ETH Tornado Cash mixing service, as well as being involved in hiding criminal financial flows and facilitating money laundering. The prosecutor’s office does not exclude that, as a result of operational and investigative measures, multiple arrests of accomplices in criminal activity will take place.
In June, the FIOD Financial Advanced Cyber Team (FACT) launched a criminal investigation into Tornado Cash. FACT suspects that the service was regularly used by criminal groups, including those associated with North Korea. They used the service to cover up large-scale criminal money flows and steal at least $1 billion worth of cryptocurrencies.
The US Treasury Department placed Tornado Cash on the sanctions list. After that, the account of one of the co-founders of the service on GitHub was blocked, and the dYdX exchange suspended service for Tornado Cash users.