Summary
Ketju does not approve Tornado Cash: it is privacy infrastructure, and its anti-money-laundering, source-of-funds, note-custody and counterparty-screening demands put it outside the types Ketju approves. It pays no yield, so yield plays no part in the verdict. Treasury removed its sanctions on Tornado Cash in March 2025, and the verdict does not rest on them. In 2025, DOJ obtained a conviction for knowingly operating an unlicensed money-transmitting business that moved criminal proceeds. The immutable pools cannot screen counterparties.
Review triggers
- Counsel and compliance approve a privacy mandate for one client with a documented lawful purpose and controls to monitor transactions
- The custodian, bank and tax-reporting counterparties confirm in writing that they accept the proposed flow and compliance report
- A test at the proposed size keeps the withdrawal note safe and produces a complete source-of-funds report without an unapproved relayer
Facts
- Verdict
- Not approved
- Type
- Other
- Chains examined
- Ethereum, BSC, Arbitrum, Gnosis, Polygon, Avalanche, OP Mainnet, Ethereum Classic
- Reviewed
- Last confirmed