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Nothing ‘unique’ about Tornado Cash as sanctions continue to pinch TORN

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Can it be any worse for the already-troubled crypto-mixer Tornado Cash? Not just on the regulatory side, but even on-chain metrics have now revealed a depressing story. From monthly users to weekly deposits and withdrawals and much more…

Dying eye of this tornado

Crypto-mixer Tornado Cash saw a significant drop in activity following the sanctions by the U.S. Treasury. Starting right from unique users on Dune Analytics, the drop was a significant one.

Data from Dune reveals a significant drop in unique users per week since the announcement of the sanctions in August 2022. In fact, the month of September saw unique users fall well below 100.

Source: Dune Analytics

This, indeed, is a sharp decline to say the least. From all-time highs in terms of unique users to potentially a permanent low.

Overall, monthly users fell by over 50% from over 2,600 in July to less than 1,000 the month after. This evidenced the >50% drop in users, as seen in the graph above.

Furthermore, when deposits and withdrawals on a weekly basis were looked at, a similar picture seemed to emerge. In fact, in the last week of September, weekly deposits and withdrawals amounted to $3.6 million and $5 million, respectively.

Source: Dune Analytics

These numbers basically went from amounting to $190 million+ in Q2 (for both segments) to the aforementioned numbers above.

Why ‘always’ ME

Well, that’s exactly the case. Tornado Cash seems to have become the #1 destination for cyber-criminals looking to launder their ill-gotten funds. First of all, the platform had been used by the North Korean state-sponsored hacking group Lazarus Group. At the time, the Treasury had said that Tornado Cash has been used to launder more than $7 billion since its creation.

That’s not all either, with the TransitSwap hacker using Tornado Cash to move some stolen funds too.

The crypto-community as a whole has suffered severe repercussions following this latest Tornado Cash episode. For instance, according to Messari, USDC’s utility took a massive hit immediately after the Tornado Cash sanctions fiasco.

Finally, the price of the native token TORN has fallen by over 20% since. At press time, it was consolidating around the $6.26-mark on the price charts.

Ergo, the question – Any better days ahead?

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Shubham is a full-time journalist/ Crypto data analyst at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on the cryptocurrency sector with particular emphasis on market research studies and communications for >2 years. Also, a die-hard Chelsea fan #KTBFFH.
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