According to a report from the European Union Internal Security Innovation Center, which supports security organizations from 27 EU countries, privacy coins, mixers, and L2 platforms may make it difficult for law enforcement agencies to track funds. The report, issued by organizations such as Europol and Eurojust to combat criminal organizations, as well as the European Commission, advises law enforcement agencies to be prepared for encountering such tools in investigations. The report states, “Mixer Tornado.cash has been using zero-knowledge proofs, allowing users to withdraw funds from the mixer without revealing their original deposit amount. This significantly increases the difficulty for law enforcement agencies to trace the (illicit) source of encrypted currencies.”
Tags: L2, Crypto Mixer, Law Enforcement, European Union, EU Innovation Center, Regulation, Privacy Coins
Source Link:
https://www.coindesk.com/policy/2024/06/11/crypto-mixers-privacy-coins-layer-2…
