Tornado Cash raises $2.5 billion in 2025, privacy protection has become a necessity

According to the latest news, the mixing protocol Tornado Cash had a total inflow of 693,412 ETH in 2025, with a total value of approximately $2.5 billion, and a net inflow of $1.4 billion. Behind this figure, it reflects the ongoing demand for privacy tools in the crypto ecosystem and also highlights the industry’s dilemma in balancing regulation and privacy.

The True Demand Behind the Data

How big is the scale

What does 693,412 ETH represent? At the current ETH price of $3,095, this amount is enough to purchase about 0.57% of the total circulating supply of Ethereum. A more straightforward way to look at it is that nearly $1.9 million flows into Tornado Cash daily, and this rate remains relatively stable throughout 2025.

It is worth noting that the net inflow of $1.4 billion means that $1.1 billion is flowing out—this indicates that Tornado Cash is not only an “import station” for funds but also a “transit station,” with many users transferring funds to other addresses or exchanges after mixing.

Why is so much money flowing in

Based on recent on-chain activity, Tornado Cash’s use cases are diversified:

• Forced use: On January 11, the Truebit hacker laundered 8,535 ETH ($26.36 million) through Tornado Cash, which is the “standard operation” for stolen funds.
• Proactive use: Crypto developer Richard Heart transferred 162,937 ETH through Tornado over the past four months for operations related to his new project ProveX.
• Personal privacy: According to Vitalik’s recent statements, he has also used Tornado Cash for private transactions, citing a desire to prevent personal information from being recorded in corporate databases.

These three scenarios represent the three user groups of Tornado Cash: hackers, project teams, and ordinary users. Each group has different motivations but all point to the same need—privacy.

Subtle Changes in Industry Attitudes

What has Vitalik’s public support changed?

On January 9, Ethereum co-founder Vitalik Buterin publicly defended Tornado Cash developer Roman Storm. This is not only symbolic support but also an industry endorsement of the legitimacy of privacy tools.

In his statement, Vitalik emphasized several key points:

• Privacy is a fundamental human right and should not be infringed upon by the public.
• Government databases also pose security risks, and information could fall into malicious actors.
• Privacy tools can continue to operate even if development stops, demonstrating their robust design.

While this stance resonates within the tech community, it also highlights a harsh reality: Tornado Cash is facing serious legal challenges. Roman Storm was convicted of operating an unlicensed fund transfer business and faces up to five years in prison.

The new balance between privacy and regulation

Related information about the Dusk project offers another insight—compliant DeFi might be the future direction. Dusk integrates privacy and auditability, allowing institutions to protect user privacy while complying with regulatory scrutiny.

This means:

• Purely anonymous tools face increasing pressure.
• Auditable privacy solutions could become industry standards.
• Traditional financial institutions need “controllable privacy” rather than “complete anonymity.”

Summary

The $2.5 billion inflow into Tornado Cash in 2025 not only reflects the genuine demand for privacy in the crypto ecosystem but also exposes the regulatory difficulties faced by such tools. From hackers laundering money to ordinary users protecting their privacy, Tornado Cash has met real market needs. However, Vitalik’s public support and the emergence of alternatives like Dusk suggest that the future of privacy tools may not lie in complete anonymity but in how to strike a balance between privacy protection and regulatory compliance. The process of finding this balance will profoundly influence the future development of the crypto ecosystem.