Chainalysis said it worked with law enforcement to recover $30 million in stolen funds from the March Axie Infinity currency heist.
Tornado Cash is the second virtual currency mixer in three months to be sanctioned by the U.S. Treasury Department.
U.S. investors have been scammed out of millions by cybercriminals impersonating legitimate cryptocurrency investment apps.
Ransomware actors are getting better at laundering their proceeds from attacks - but law enforcement authorities are also getting better at tracking illicit cryptocurrency funds down.
The takedown of the infamous Hydra market has had lasting effects on the cybercrime underground and cryptocurrency laundering ecosystem.