The recent arrest made by the Dutch Fiscal Information and Investigation Service (FIOD) in Amsterdam on August 10 has stirred up the cryptocurrency world. The 29-year-old man was apprehended in connection with the U.S. Treasury sanctions on decentralized Ethereum mixing service Tornado Cash. The individual, whose identity remains undisclosed, is suspected of being involved in concealing criminal financial flows and facilitating money laundering through the mixing of cryptocurrencies using Tornado Cash.
The FIOD has indicated that this arrest may not be the last, with the possibility of multiple arrests looming. The agency is committed to ensuring a safe financial environment in the Netherlands and is actively investigating cases with a significant impact. The suspect is currently being presented before the examining judge.
The Financial Advanced Cyber Team (FACT) of the FIOD initiated a criminal investigation against Tornado Cash in June. The investigation focuses on the use of Tornado Cash to conceal large-scale criminal money flows, including funds stolen through hacks and scams, with some believed to be linked to North Korea. FACT has estimated that Tornado Cash has processed a turnover of at least $7 billion since its inception in 2019, in line with the figures disclosed by the U.S. Treasury.
It has been revealed that at least $1 billion worth of cryptocurrencies of criminal origin have passed through Tornado Cash, leading to suspicions that the individuals behind the organization have profited significantly from these transactions. The investigation in the Netherlands is being led by the Public Prosecutor’s Office for serious fraud, environmental crime, and asset confiscation.
This development comes in the wake of a joint effort by security agencies in five countries, including the Netherlands, to identify common tactics used by threat actors to compromise victims. Additionally, Belgian and Dutch police recently collaborated to dismantle an organized crime group responsible for stealing millions of euros from phishing victims.
As the investigation into Tornado Cash unfolds, the cryptocurrency community is closely monitoring the situation for further developments and implications on the industry.