Tornado Cash left a void, time will tell what fills it – Chainalysis Chief Scientist

There's a hole to fill where Tornado Cash once stood, and "junior mixers" are vying for position as a result of blender sanction and ban by US Treasury.

Sanctions on cryptocurrency mixer Tornado Cash have left a vacuum for illicit funds mixing services, but more time is needed before the full impact is known, according to Chainalysis chief scientist.< /p>

During a demo of Chainalysis' recently launched blockchain analytics platform Storyline, Cointelegraph interviewed Jacon Illum, Chief Scientist at Chainalysis, and Todd Lenfield, Country Manager for Australia and New Zealand. Zealand, on the impact of the Tornado Cash ban.

Illum said that while there is still some use of the blender, more time is needed to "see what's going on" and how the "world responds to this designation", adding that people are trying to figure out what to do now the crypto blender is effectively gone :

"People are becoming more cautious in the space and unsure how to interact with Tornado Cash, we've seen deposits at services providing similar activity decrease at least temporarily, because people are wondering 'what is does this mean to me?"

But where others see obstacles, some clearly see opportunity, Illum noted that a generation of what he calls "junior mixers" has emerged looking to take advantage of the void left by Tornado Cash.

An August report from blockchain security firm SlowMist said that 74.6% of funds stolen from the Ethereum network were transferred to Tornado Cash in the first half of 2022, a sum of more than 300,000 Ether (ETH), or approximately $380 million.

Data from Chainalysis showed that the 30-day moving average of total daily value received by crypto mixers hit a new all-time high of $51.8 million in April.

"If there's no cash, you're effectively drying out...