Launch of Regulatory-Compliant Crypto Mixer: Tornado Cash

Former Tornado Cash developer Amine Soleimani has developed a new mixing service called Privacy Pools to address a critical flaw in the sanctioned crypto mixer.

In cryptocurrencies, privacy is a major concern for many users. One solution to this problem is mixing services, allowing users to anonymize their transactions by mixing them with those of other users.

One such service that has gained popularity in recent years is Tornado Cash. However, it does have some drawbacks. The crucial factor is that users cannot prove that they are not affiliated with a criminal enterprise that launders or steals money. Its former developer, Amin Soleimani, is now introducing privacy pools to address these issues.

What are privacy pools?

Soleimani asserts that privacy pools will fix issues with crypto mixers. The new mixer uses Proof of No-Knowledge (ZK) which enables its users to prove that withdrawals are not part of illegal transactions.

With privacy groups, Ethereum (ETH), the second largest cryptocurrency, can be sent and received anonymously using a demo of the new coin-mixing tool.

However, unlike Tornado Cash, it enables customers to prove their compliance with local laws while protecting anonymity when performing on-chain transactions.

“My goal is to have a privacy tool that I can use as an American citizen. That’s always been my goal — it was the goal when we made Tornado Cash in the first place.”

Former Tornado Cash developer Amin Soleimani

However, Soleimani cautioned that the development is an unaudited beta piece of code, and the group is still working on fixing some bugs.

In the year 2022, US authorities have banned local citizens from using Tornado Cash. The authorities resorted to this to prevent the North Korean hacking group Lazarus from using the site to launder stolen money. The US Treasury Department claimed that Tornado Cash was crucial to laundering more than $7 billion.

The public demo of Privacy Pool is published

Pools beta is currently online.

Privacy pools have already gained some traction in the cryptocurrency community, with many users eager to try them out. Soleimani is optimistic about the future of the project and hopes to continue improving it.