Coin Mixers Recovering As Users Shift to New Platforms: Cambridge University
Decrypt
by Simon ChandlerFebruary 26, 2026
AI-Generated Deep Dive Summary
Coin mixer usage has surged again, driven by users migrating to newer, more compliant platforms like Railgun. According to research from Cambridge University's Centre for Alternative Finance, Railgun now dominates the market with 71% of all transactions, while Tornado Cash has seen a modest recovery since sanctions were lifted last year. Despite this shift, the report highlights that mixer usage remains heavily linked to illicit activities, with most transactions originating from unlabelled sources and occurring within hours of wallet creation—a behavior often associated with criminal activity.
The study reveals that the 2022 ban on Tornado Cash significantly reduced its transaction volume, but users quickly turned to alternatives. Railgun and Privacy Pools have gained traction due to their "proof-of-innocence" systems, which verify deposits against blacklists. However, these platforms rely on external updates to detect suspicious activity, leaving room for bad actors to exploit them before they are flagged.
While some legitimate users employ mixers for privacy or commercial confidentiality, the data suggests that most mixer activity is illicit. After the Tornado Cash ban, deposits from regulated exchanges—typically subject to KYC/AML checks—plummeted, and unlabelled sources now account for 95% of all funding. This shift aligns with patterns linked to criminal behavior, such as rapid transactions to avoid detection.
The findings underscore the ongoing challenges regulators face in curbing illicit crypto activity. Despite increased compliance among users, the prevalence of fast, anonymous transactions raises concerns about mixer platforms becoming a hub for illegal finance. For crypto enthusiasts, this highlights both the privacy benefits and risks associated with using these tools.
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Originally published on Decrypt on 2/26/2026