The Dutch Authorities Arrest a Suspect Connected to Tornado Cash in Amsterdam
The Dutch Fiscal Information and Investigation Service (FIOD) made headlines when they announced the arrest of a 29-year-old man in Amsterdam on August 10. This arrest was in connection with the recent U.S. Treasury sanctions on decentralized Ethereum mixing service Tornado Cash.
Suspected Involvement in Concealing Criminal Financial Flows
The unnamed individual is under suspicion for his alleged involvement in concealing criminal financial flows and facilitating money laundering through the mixing of cryptocurrencies using Tornado Cash.
FIOD stated on their website that “multiple arrests are not ruled out,” emphasizing their commitment to ensuring a safe financial environment in the Netherlands.
Investigation by the Financial Advanced Cyber Team
The Financial Advanced Cyber Team (FACT) of FIOD initiated a criminal investigation against Tornado Cash in June. They suspect that the platform has been used to conceal large-scale criminal money flows, including funds stolen through hacks believed to be associated with North Korea.
FACT revealed that Tornado Cash has facilitated a turnover of at least $7 billion since its inception in 2019, aligning with the figures disclosed by the U.S. Treasury. It is estimated that at least $1 billion worth of cryptocurrencies of criminal origin passed through the mixer.
Collaboration with the Public Prosecutor’s Office
In the Netherlands, the investigation into Tornado Cash is led by the Public Prosecutor’s Office for serious fraud, environmental crime, and asset confiscation. This probe comes after security agencies outlined common ways threat actors compromise their victims.
Joint Efforts to Combat Cybercrime
The arrest in Amsterdam follows a joint investigation between Belgian and Dutch police that led to the dismantling of an organized crime group responsible for stealing millions of euros from phishing victims. This collaborative effort demonstrates the commitment of law enforcement agencies to combat cybercrime and ensure a secure digital environment for all.