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Suspected project developer arrested in Amsterdam

A suspected developer of the crypto mixer Tornado Cash has been arrested in the Netherlands.

By Mike Hesp
• 2 min read
Suspected project developer arrested in Amsterdam

A suspected developer of the crypto mixer Tornado Cash has been arrested in the Netherlands.

The Dutch law enforcement agency FIOD announced last Friday the arrest of a suspected developer of the sanctioned crypto mixer Tornado Cash in Amsterdam. The 29-year-old had already appeared before a magistrate. He is charged with "concealing criminal money flows" and "facilitating money laundering". "Numerous arrests have not yet been made," it adds.

Tornado Cash is a so-called mixer. Users can send their cryptocurrencies to a pool of coins. There the funds are mixed and randomly sent to a wallet address. What was meant to protect privacy is also being misused by cybercriminals to launder money.

The sanctioning of Tornado Cash by the U.S. authority OFAC has sparked controversy in the crypto world. The arrest further fuels the debate.

The question remains how criminally liable participation in an open source project can be. In general, the case could have a chilling effect on crypto projects that focus on protecting privacy.

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