tornadocash

Another serious security breach has shaken the crypto world. The Nervos Network has fallen victim to an exploit after attackers took control of its cross-chain bridge Force Bridge, leading to the theft of approximately $3 million in digital assets.

Attackers Took Over Force Bridge and Laundered the Funds
According to initial reports, an unknown attacker managed to seize control of the Force Bridge—used to connect different blockchains within the Nervos ecosystem. After gaining access, they moved the assets to Ethereum and laundered them through the privacy tool Tornado Cash.
This tactic made it nearly impossible to trace or recover the stolen funds—Tornado Cash is specifically designed to obfuscate transaction trails.

Magickbase and Cyvers Sound the Alarm
The first warning came from Magickbase, a developer of desktop wallets integrated with Nervos. In a post on X (formerly Twitter), the team reported suspicious activity on Force Bridge and immediately shut down related services as a precaution:
“We detected abnormal activity on #ForceBridge and proactively paused the service. Our team is investigating the situation.”

Blockchain security firm Cyvers Alerts followed up with a detailed analysis, confirming that a suspicious address had taken over the bridge and initiated unauthorized transfers from the Nervos network.

Tornado Cash Used as a Laundering Tool
The attacker moved the stolen assets to Ethereum and began funneling the funds through Tornado Cash—a crypto “mixer” that hides transaction origins and destinations. This method of money laundering has become increasingly common among cybercriminals, and once the funds enter Tornado, recovery becomes nearly impossible.

A Growing Threat Across the Blockchain Space
Unfortunately, this isn’t an isolated case. Cross-chain bridges—technologies meant to connect different blockchain ecosystems—have become one of the most targeted components in crypto infrastructure.
Just in the past year, we've seen similar exploits affect the Ronin Bridge, Binance Bridge, Orbit Chain, Socket, and more, costing users millions of dollars.
The Force Bridge was part of Nervos Network’s broader vision of secure and scalable blockchain interoperability. The network has long been praised for its hybrid model that combines Bitcoin’s UTXO system with smart contract functionality. In a 2024 report, Messari even named Nervos CKB a potential breakthrough platform in blockchain programmability.
However, this breach highlights the harsh truth: even technically advanced networks are only as secure as their weakest component.

Tornado Cash: Privacy Protector or Criminal Gateway?
This incident also reignites the ongoing debate around tools like Tornado Cash. While proponents argue it provides privacy benefits to regular users, criminals continue to exploit it to clean massive amounts of stolen funds.
Given the increasing frequency of such events, it's likely that regulatory pressure on privacy-focused tools will continue to intensify.

#Cryptoscam , #CyberSecurity , #NervosNetwork , #BlockchainSecurity , #TornadoCash

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The crypto world is on edge. The Ethereum Foundation has stepped up to support the legal defense of Roman Storm, co-founder of the controversial Tornado Cash protocol, announcing a $500,000 contribution just days after a federal jury found Storm guilty on one count of a three-part indictment. He now faces up to five years in prison, and possibly more if prosecutors retry the other charges.
🧾 “Privacy is normal. Writing code is not a crime,” said Ethereum Foundation Executive Director Wei Wang.

Legal advocacy groups have warned that the outcome of this case could set a global precedent for open-source developers.

Charged for Writing Code? The Legal Battle Over Tornado Cash
Storm’s case stems from his role in developing Tornado Cash — a crypto mixer that enables anonymous transactions by blending users’ funds together. The U.S. Treasury claims that since 2019, the protocol has been used to launder over $7 billion, including funds allegedly moved by North Korea’s Lazarus Group.
Federal prosecutors painted Storm as someone who profited from concealing criminal activity, while his defense insists Tornado Cash was designed as a privacy tool for ordinary users, not criminals.

Are Developers Under Siege? Code at the Center of Legal Attacks
Many legal experts are raising serious concerns, warning that U.S. authorities may be overreaching by applying money laundering laws to developers who merely write open-source code and don’t control user funds.
A prominent crypto attorney called the verdict “a dark day for DeFi” and argued that Section 1960 should not apply to non-custodial protocol developers. He urged the courts to overturn what he sees as a dangerous legal misstep.
Meanwhile, Roman Storm has appealed for more support. In July, he requested an additional $1.5 million, citing rapidly escalating legal fees and a defense team working “around the clock” during the intense three-week trial.

Rising Pressure on Crypto Mixer Developers
This week, the founders of another crypto mixer — Samourai Wallet — pleaded guilty to similar charges. They now face up to five years in prison, with U.S. officials claiming the wallet was used to launder over $100 million, calling it a “haven for large-scale money laundering and sanctions evasion.”
Roman Storm’s ongoing legal saga is shaping up to be a landmark case for digital privacy, open-source development, and the future of permissionless technology.

#TornadoCash , #Ethereum , #ETH , #Cryptolaw , #Regulation

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Yesterday, the U.S. District Court for the Western District of Texas lifted sanctions against Tornado Cash, a protocol for mixing cryptocurrencies that were imposed by the Treasury Department's Office of Foreign Assets Control (OFAC). This decision has become an important event for the crypto industry and raises many questions about the future of privacy technologies.
The history of sanctions
In August 2022, Tornado Cash was included in the OFAC sanctions list due to allegations of facilitating illegal transactions worth more than $455 million related to the North Korean Lazarus Group. These actions caused a wide response: developers, including Alexey Pertsev, were arrested, and the crypto community began to talk about where the line between innovation and compliance with the law lies.
Why is the decision important?
The court ruled that OFAC's actions may have exceeded their authority. The plaintiffs, consisting of Tornado Cash users, argued that immutable smart contracts are not "proprietary" in accordance with the law, and their blocking is contrary to the law.
In addition, they emphasized that blockchain is transparent by nature, and tools such as Tornado Cash perform legitimate functions to protect user privacy.
The Future of Privacy in Cryptocurrencies
This victory raises the question of how to regulate privacy-preserving technologies. Some, like Matthew Niemerg of Aleph Zero, believe that innovation and privacy must go hand in hand with meeting legal requirements. However, there are still many unresolved issues: for example, the responsibility of developers for using their technologies.
Alexey Pertsev is still in custody, despite the fact that Tornado Cash is a decentralized protocol that he did not directly manage. This case raises the question of how much personal responsibility can be applied to the creators of such technologies.
What does this mean for the cryptocurrency industry?
The court ruling could set a precedent that points the way to a more balanced regulation where innovation is protected and abuse is prevented. But while the industry is waiting for further development of the Pertsev case and clarification of legislation, the question remains open.:
How do you think it is possible to achieve a balance between privacy protection and security in the crypto industry?
#TornadoCash #cryptocurrency #crypto