193 small withdrawals from Coinbase on June 23.
Total of $1.67M USDC moved, swapped to ETH.
Funds routed into Tornado Cash, flagged by Zachxbt.
On June 23, 2025, analytics researcher Zachxbt flagged a series of 193 small withdrawals from Coinbase. Instead of one large transfer, the funds—totaling approximately $1.67 million USDC—were split into multiple minor transactions. This fragmentation is often a tactic to avoid attracting attention or triggering automated tracking. 
Funds Converted and Laundered
Once the USDC arrived in a single destination wallet, it was swiftly swapped for ETH (Ether). Immediately after, the Ethereum was deposited into Tornado Cash, a privacy protocol that mixes funds to obscure their origin and destination. This method is widely recognized as a money laundering tactic, as Tornado Cash breaks linkage between sending and receiving addresses.
Broader Implications
This case highlights persistent efforts to use on-chain mixers to anonymize illicit or privacy-focused transfers. Despite being sanctioned in some jurisdictions, Tornado Cash remains operational and continues to attract large capital flows. These fragmented withdrawals from reputable exchanges like Coinbase may represent a significant hurdle for forensic analysis and regulation.
UPDATE: 193 small Coinbase withdrawals sent $1.67M USDC to a wallet on June 23.
Swapped to ETH and deposited into Tornado Cash, per Zachxbt. pic.twitter.com/oG135VxK4D
— Cointelegraph (@Cointelegraph) June 29, 2025
What This Means for Crypto Users
Heightened Privacy vs. Illicit Risk
While Tornado Cash provides privacy, it’s increasingly seen as a tool for concealing illicit activity.Regulatory Pressure on Mixers
Regulators are now more focused than ever on tracing and limiting mixer usage tied to large transfers.Exchange Monitoring Intensifies
Exchanges like Coinbase may face more pressure to detect and prevent structuring through multiple small withdrawals.
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