As it is known, Tornado Cash found itself in the middle of a scandal involving attacks on Ethereum Blockchain bridges, including the Horizon bridge of Harmony network, by North Korea's most notorious hacker group Lazarus.

According to the latest report by SlowMist, Tornado Cash has received 300,160 ETH so far, representing close to 75% of the total funds laundered from the Ethereum network. The rest of the funds are still in the hackers' crypto wallets. Another 6,250 ETH (1.5 percent of the total stolen funds) was sent to cryptocurrency platforms. SlowMist research has revealed that a significant portion of money laundering activities on the Ethereum and Bitcoin networks occur through Tornado Cash.

According to recent findings, Tornado Cash, which has been mixing crypto transactions, has been the first stop of many attackers, including Lazarus, since 2019. While research shows that the platform has been used to transfer over $7 billion in crypto assets in recent years, the US Treasury Department sanctioned Tornado Cash earlier this month.

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Blockchain experts, on the other hand, predict that hacking events originating from North Korea may escalate and think that measures should be taken to prevent the situation from getting worse. Jesse Powell, CEO of cryptocurrency exchange Kraken, criticized the government's sanctions against the cryptocurrency transaction mixing service Tornado Cash, interpreting it as an ill-considered response.

Speaking in an interview with Bloomberg Technology, Powell stated that the regulatory sanctions were an unconsidered decision, claiming that it was a hasty decision to protect investors, especially after the Terra collapse. According to Powell, the Tornado Cash service stands for freedom of expression.

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Powell stated that despite finding the sanctions unfair, Kraken will block funds from addresses linked to Tornado Cash. In order to protect the victims of US citizens, the US Treasury Department recently sanctioned Tornado Cash, which has a system that can launder crypto funds stolen as a result of cyber attacks.

Also, after the sanction decision, Tornado Cash developer Alexey Pertsev was arrested on August 12. The arrest decision has come under criticism from some groups, who say Terra's founder Do Kwon, who has caused billions of dollars in damage in the cryptocurrency industry, is still roaming free.