Ethereum News Today: Infini Hacker Launders 3,000 ETH via Tornado Cash Amid Regulatory Scrutiny

On July 17, 2025, the Infini hacker laundered 3,000 ETH using Tornado Cash, a cryptocurrency mixing service. This incident follows an earlier breach where the hacker converted 1,770 ETH to approximately 5.9 million DAI. The use of Tornado Cash to launder funds highlights the vulnerabilities in digital financial platforms and the challenges in tracking illicit activities through crypto-mixing services.

The Infini hacker's actions underscore the ongoing security challenges faced by digital financial platforms. In February, Infini suffered a $49.5 million breach, and the repeated use of Tornado Cash for laundering activities raises concerns about the effectiveness of current security measures. The incident also revives debates about the role of crypto-mixing services in facilitating money laundering and the need for stricter regulations within the cryptocurrency environment.

Regulatory scrutiny on Tornado Cash has intensified globally, with U.S. prosecutors emphasizing the protocol’s role in major laundering activities. The trial of Roman Storm, the developer of Tornado Cash, has drawn attention to regulatory shortcomings in controlling such platforms. Storm is facing charges of conspiring to commit money laundering, running an unlicensed money-transmitting company, and violating federal sanctions. Prosecutors argue that Storm knowingly allowed criminals to launder billions of dollars in dirty crypto through Tornado Cash, while the defense maintains that Storm is a privacy advocate who wrote useful code for legitimate purposes.

The trial of Roman Storm is expected to last about a month and will feature testimonies from both hackers and victims. The outcome of this trial will have significant implications for the future of cryptocurrency mixing services and the legal boundaries of financial privacy in the digital age. The absence of statements from Infini's leadership and the ongoing legal proceedings against Tornado Cash's developers highlight the mounting pressure on related entities to enforce more robust anti-laundering measures.

Tornado Cash has been a key player in laundering over $7 billion of illicit funds, a significant portion of which originated from major breaches. The platform's ability to mix cryptocurrency transactions makes it virtually impossible for law enforcement to track the flow of funds, thereby facilitating money laundering activities. The trial of Roman Storm and the ongoing scrutiny on Tornado Cash emphasize the need for enhanced security protocols and regulatory frameworks in the crypto domain. With increasing incidents of crypto laundering, experts emphasize the urgent necessity for industry-wide collaboration to fortify trust and stabilize markets globally.