A co-founder of a major cryptocurrency mixer has been sentenced to five years in prison for his role in a large-scale money-laundering operation. The individual, a co-founder of the crypto mixing service Tornado Cash, was found guilty of conspiring to operate an unlicensed money transmitting business that moved more than $1 billion in criminal proceeds.

Tornado Cash functioned as a cryptocurrency mixer—an online tool designed to help users mix or obscure the origins of their digital assets. Prosecutors argued that the service allowed criminals, including North Korean hackers and other illicit actors, to move and conceal stolen or illegally acquired funds. Despite being aware of its use for crime, the founders continued to fund, develop, and promote Tornado Cash, advertising the ability to make untraceable financial transactions.

Throughout its operation, the platform facilitated over $1 billion in transfers linked to illegal activity, generating millions in profits for its operators. Authorities highlighted that the defendants directly profited from providing this service, cashing out more than $12 million from the business.

This sentencing demonstrates an ongoing effort by law enforcement to hold individuals accountable for enabling crime in the digital asset space, emphasizing that technological innovation does not excuse illegal activity.