Nothing unique about Tornado Cash as sanctions continue to pinch TORN



Could it be worse for the already struggling crypto mixer Tornado Cash? Not just on the regulatory side, but even on-chain metrics have now revealed a depressing story. From monthly users to weekly deposits and withdrawals and much more…

Dying eye of this tornado

Crypto-mixer Tornado Cash has seen a significant drop in activity following US Treasury sanctions. Right from the start of unique users on Dune Analytics, the drop was significant.

Data from Dune reveals a significant drop in the number of unique users per week since the sanctions announcement in August 2022. In fact, September saw unique users fall well below 100.

Source: Dune Analysis

This is indeed a steep drop, to say the least. All-time highs in terms of unique users to potentially a permanent low.

Overall, monthly users fell by more than 50%, from over 2,600 in July to less than 1,000 the following month. This highlighted the drop of more than 50% in the number of users, as shown in the graph above.

Moreover, when deposits and withdrawals on a weekly basis were examined, a similar picture seemed to emerge. In fact, during the last week of September, weekly deposits and withdrawals amounted to $3.6 million and $5 million, respectively.

Source: Dune Analysis

Those numbers went from $190 million+ in the second quarter (for both segments) to the aforementioned numbers above.

Why always me

Well, that’s exactly the case. Tornado Cash seems to have become the #1 destination for cybercriminals looking to launder their ill-gotten funds. First, the platform had been used by the North Korean state-sponsored hacking group Lazarus Group. At the time, Treasury said Tornado Cash had been used to launder more than $7 billion since its inception.

That’s not all either, the TransitSwap hacker using Tornado Cash to move stolen funds as well.

The crypto community as a whole has suffered severe repercussions following this latest installment of Tornado Cash. For example, according to Messari, the USDC utility took a massive blow immediately following the Tornado Cash sanctions fiasco.

Finally, the price of the native token TORN has since dropped more than 20%. At press time, it was consolidating around the $6.26 mark on the price charts.

Ergo, the question – Better days ahead?

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