What Happened to the Crypto Mixer CycloneSwap?
In 2023, I launched CycloneSwap, a privacy mixer for Ethereum based on the core mechanics of Tornado Cash. The purpose was to break the traceable link between wallet identities on-chain. Ethereum makes every transaction permanently visible, and even when users create new wallets, their activity often reveals connections to their main address. CycloneSwap aimed to give users a practical way to separate those identities and regain privacy.
One feature that set CycloneSwap apart was how it handled the internal mixing paths. It used a randomized branching mechanism within its circuits to add entropy to transaction flows, making forward and backward tracing more difficult, even when volume was low. This added mathematical complexity gave the system stronger protection than most surface-level clones.
By 2024, the project had shut down. The protocol functioned correctly and the concept made sense. What it lacked were the conditions needed for long-term survival. These are the kinds of issues that only become obvious once you've actually tried building a tool like this.
What It Was Meant to Do
The technical design followed the Tornado Cash model closely: zero-knowledge proofs, fixed-amount deposits and withdrawals, and unlinkability between the deposit address and the withdrawal address. The goal wasn’t to compete with Tornado or innovate around it. It was to bring the same functionality to new users in a familiar, low-friction format.
I acted as the product lead and handled the design, roadmap, and user experience. I paid a developer to implement the cryptographic backend. The launch was modest but functional.
Why It Failed
There were a few issues. Some predictable and others structural.
Low Volume: Privacy mixers rely on transaction density to be effective. When only a few people use the service, unlinkability breaks down. Without consistent deposits and withdrawals, even good cryptography becomes transparent. CycloneSwap never attracted enough volume to create strong privacy sets.
Isolation from the Ecosystem: CycloneSwap operated independently, without integration into broader tooling or trusted infrastructure. There were no bridges, relayers, or DApps directing users to it, and exchanges avoided anything associated with mixers. By 2023, Alexey Pertsev, a Tornado Cash developer, had been arrested in the Netherlands, and U.S. authorities were expanding enforcement efforts against anyone maintaining or promoting mixing services. Even though CycloneSwap was not named and took care to flag suspicious activity, it still operated under the shadow of that broader crackdown.
Lack of Sustained Development: The roadmap was longer than my resources. I had more ideas for infrastructure improvements and usability upgrades, but implementing them meant more money and more time. After the initial dev work, there was no momentum left. Once usage dropped, there was little reason to push new releases.
No Drama, Just Shutdown
There was no exploit, no legal takedown, and no financial loss. The platform continued functioning as intended until it became clear that usage had dropped below a sustainable threshold. At that point, I notified the remaining ahead of time, and the interface was taken offline eventually.
The contracts themselves were immutable and still exist on-chain, but with no front-end, no new users, and no activity, CycloneSwap effectively ended.
In crypto, people often expect drama. Stories of hacks, lawsuits, or betrayal. But sometimes, a project fades for simpler reasons: low adoption, limited resources, and a hostile regulatory climate. That’s what happened here.
I still think the need for privacy hasn’t gone away. What’s changed is the cost of trying to provide it. Cryptocurrencies are slowly losing one of their original advantages, which was privacy, as KYC laws and surveillance practices become the norm.
I debated whether to even write this. It’s not fun to talk about projects that didn’t take off. There are no sensational stories here, no legal trouble, no revelations. Just a quiet shutdown.
Interestingly, in 2024, OFAC clarified that simply interacting with Tornado Cash’s open-source code or viewing its website wasn’t grounds for sanctions violations. That didn’t undo the damage, but it shows how murky the landscape still is. For now, privacy tools remain possible, but no longer safe to build without consequences.