Tornado Cash token loses almost 25% of its value after developer’s arrest

After the developer of the cryptocurrency mixer Tornado Cash was detained in Amsterdam, its native TORN token plummeted by 24%. When the U.S. Treasury Department added the service to its sanctions list, Tornado Cash saw a significant decrease in the number of deposits, while the number of withdrawals increased. Since the sanctions were imposed, only $ 6 million has been deposited into the system.

The value of the TORN token has dropped by about 97% since its all-time high on February 13, 2021. For comparison, the price of BTC and ETH decreased by only 3.2% and 0.9%, respectively, over the day. According to CoinMarketCap, TORN’s market capitalization is approximately $ 135 million, while the market value of BTC is $ 455 billion.

It is worth reminding that in just one day after the US sanctions were imposed, the Tornado Cash token fell by 45%. Both state-owned enterprises and ordinary Americans are prohibited from using the services of the mixer due to its involvement in money laundering.

According to the US Treasury Department, in March 2022, Tornado Cash was also used by the North Korean hacker organization Lazarus Group, which was linked to the attack on the Axie Infinity blockchain gaming project. The damage then amounted to almost $ 625 million.