Security News > 2022 > August > Tornado Cash Developer Arrested After U.S. Sanctions the Cryptocurrency Mixer

Dutch authorities on Friday announced the arrest of a software developer in Amsterdam who is alleged to be working for Tornado Cash, days after the U.S. sanctioned the decentralized crypto mixing service.

Although FIOD didn't reveal the name of the Tornado Cash engineer, The Block identified him as Alexey Pertsev, citing confirmation from his wife.

The agency, which initiated an investigation into Tornado Cash in June 2022, further hinted it may make more arrests.

Earlier this week, Tornado Cash became the second cryptocurrency mixer to be slapped with sanctions by the U.S. government after Blender.io for playing a central role in helping organized criminal gangs launder the proceeds of crime such as ransomware and cryptocurrency hacks.

The latest developments underscore the growing scrutiny of cryptocurrency mixing services for what's being perceived as a mechanism for cashing out ill-gotten cryptocurrencies.

The move to blocklist Tornado Cash is also seen as an attempt on part of the U.S. government to respond to North Korea's use of cyber warfare against cryptocurrency exchanges and services to finance its strategic goals.

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https://thehackernews.com/2022/08/tornado-cash-developer-arrested-after.html