Centralized Crypto Exchanges, Not Mixers, Drive Global Money Laundering

**Centralized Crypto Exchanges Drive Money Laundering More Than Mixers, Storm Conviction Reveals**

The recent conviction of Tornado Cash co-founder Roman Storm for operating an unlicensed money-transmitting business has sparked crucial debates about cryptocurrency money laundering patterns. While prosecutors celebrated the New York ruling as a victory against crypto-based financial crimes, blockchain analysis reveals a more complex reality about illicit digital asset flows.

Contrary to popular belief, centralized cryptocurrency exchanges—not privacy-focused mixers like Tornado Cash—facilitate the majority of global money laundering activities in the digital asset ecosystem. This finding challenges regulatory narratives targeting DeFi protocols and privacy tools while potentially overlooking larger institutional vulnerabilities.

The Storm case highlights growing regulatory scrutiny of decentralized finance (DeFi) platforms and privacy-enhancing technologies in the cryptocurrency space. As Bitcoin and other digital assets gain mainstream adoption, distinguishing between legitimate privacy needs and criminal activity becomes increasingly critical for market stability.

This development could significantly impact DeFi innovation, cryptocurrency compliance frameworks, and blockchain privacy solutions. Investors and crypto enthusiasts should monitor how these legal precedents shape future regulations affecting decentralized protocols and digital asset privacy tools across global markets.