People who are concerned about fraudulent players on the blockchain may feel reassured that since anyone can see the path of funds, their money can be easily traced.
However, crypto mixers have been a game changer and not always in a positive sense. These tumblers “mix up” data to make it impossible, or at least very difficult, to identify and trace blockchain transactions.
Crypto mixers or tumblers were designed to provide privacy to legitimate crypto holders. However, crypto frauds may take advantage of this technology to launder money on the blockchain.
The Role of Crypto Mixers in Fraud Operations
A report by data analytics company Chain analysis found that the use of crypto mixers has doubled between 2021 and 2022 and 10% of funds from illicit addresses are sent through crypto tumblers to disguise information.
Using crypto mixers isn’t illegal. Popular tumbler Tornado Cash insists that its technology is intended for individual customers who are searching for …