Deep Dive
1. Mistrial in $25M Ethereum Case (8 November 2025)
Overview:
A Manhattan federal court declared a mistrial in the case against MIT-educated brothers accused of exploiting Ethereum’s MEV system via “sandwich attacks” to siphon $25M. The jury deadlocked on whether using public blockchain code for profit constitutes fraud.
What this means:
This outcome leaves unresolved whether developers can be prosecuted for code-based financial strategies, mirroring Tornado Cash’s legal battles. The parallels to Tornado Cash’s sanctions and developer charges suggest ongoing regulatory uncertainty for privacy tools. (TradingView News)
2. Garden Finance Hackers Launder $6.65M (7 November 2025)
Overview:
Attackers moved 501 BNB and 1,910 ETH stolen in an October 31 exploit to Tornado Cash, complicating traceability. The exploit drained $10.8M from Garden Finance, a DeFi protocol.
What this means:
The incident underscores Tornado Cash’s continued role in laundering post-hack funds, reinforcing regulatory concerns about its misuse. U.S. District Judge Katherine Polk Failla previously noted Tornado Cash “breaks traceability,” heightening scrutiny. (CoinMarketCap)
3. Record $400M Tornado Cash Volume (7 November 2025)
Overview:
Tornado Cash saw a record $400M transaction volume, driven by 116,000 ETH (worth ~$393M) deposited from 21 addresses tied to PulseX, an exchange linked to SEC-charged founder Richard Heart.
What this means:
Despite Heart’s ongoing legal issues (unregistered securities and fraud), the surge highlights persistent demand for privacy tools. However, regulatory risks loom as authorities monitor large transactions. (Yahoo Finance)
Conclusion
Tornado Cash remains a focal point in crypto’s privacy-regulation clash, balancing surging usage against legal headwinds. While whale activity and DeFi exploits drive demand, ongoing trials and ambiguous legal precedents keep TORN’s future uncertain. Will regulatory crackdowns stifle adoption, or will privacy remain non-negotiable for crypto users?