Article Summary

**Centralized Exchanges Remain Top Choice for Cryptocurrency Money Laundering Operations** Despite blockchain technology's transparency, centralized exchanges continue serving as criminals' preferred cryptocurrency money laundering platforms. This summer's conviction of Roman Storm, Tornado Cash co-founder, in New York federal court highlights ongoing regulatory crackdowns on illicit crypto activities. Storm was found guilty of conspiring to operate an unlicensed money-transmitting business through the controversial crypto mixer. The case underscores how decentralized finance (DeFi) protocols like Tornado Cash facilitate anonymous Bitcoin and cryptocurrency transactions, attracting criminal enterprises seeking to obscure digital asset trails. While blockchain technology provides immutable transaction records, sophisticated mixing services exploit centralized exchange vulnerabilities to launder funds effectively. This landmark conviction signals intensified government enforcement against cryptocurrency mixers and unlicensed digital asset businesses. The ruling impacts the broader crypto market, potentially affecting DeFi innovation and regulatory compliance standards. As authorities crack down on illicit cryptocurrency operations, legitimate exchanges face increased scrutiny and compliance requirements, reshaping the digital asset landscape for both institutional and retail investors navigating evolving cryptocurrency regulations.