Coin mixers are services that obscure the origin and destination of cryptocurrency transactions, offering users privacy. While privacy advocates see them as essential tools for protecting anonymity, regulators have long viewed them as potential tools for money laundering.
In 2022, the U.S. Treasury sanctioned Tornado Cash, an Ethereum-based mixer, citing its use in laundering billions. However, in 2025, the Treasury lifted the sanctions, acknowledging that coin mixers can have legitimate uses for lawful users.
Legal battles followed, with courts ruling that smart contracts cannot be classified as property, limiting the government's ability to sanction them. Despite this, some developers remain under legal pressure.
Examples include Bitcoin Fog, Samourai Wallet, and Wasabi Wallet, each with a history of regulatory conflict. While some mixers aim to balance privacy and compliance, others continue to draw criticism from law enforcement.
The debate over crypto privacy remains unresolved, with ongoing legal and policy challenges shaping the future of these tools.