Tornado Cash is a decentralized, non-custodial privacy protocol (a “crypto mixer”). It was launched in December 2019 on Ethereum, with support for multiple EVM-compatible chains like Polygon, Arbitrum, Optimism, and Avalanche. It uses zk-SNARK zero-knowledge proofs to break the on‑chain link between deposit and withdrawal addresses. Users anonymize transactions by pooling funds in fixed denominations.
The protocol is open-source and trustless, meaning that there is full custody of funds with no central party involved in the mixing. This kind of total privacy comes at a cost. Tornado Cash has attracted attention for illicit activity, leading to a U.S. Treasury OFAC sanction in 2022, citing its misuse to launder over $7 billion, including North Korean Lazarus-linked thefts. Notably, a developer was later convicted in the Netherlands for laundering $1.2 billion via the platform. Despite legal scrutiny, Tornado remains a cornerstone of on-chain privacy and a key tool for financial anonymity.
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