Coin Mixers Recovering As Users Shift to New Platforms: Cambridge University

Utilization of coin mixers has reached its highest stage since 2022, in line with new analysis from the Cambridge Centre for Various Finance (CCAF).

In an article revealed on Tuesday, researchers Wenbin Wu and Keith Bear reported that transactions for coin mixers have been rising for the reason that 2022 Twister Money ban, as customers migrate primarily to extra compliant platforms.

The report notes the large impression sanctions had in 2022 and past, with Twister Money’s each day transactions falling by 97% in a matter of days, whereas transactions for mixers as an entire dropped by 48%.

Utilization remained low between late 2022 and March 21, 2025, when the U.S. Treasury eliminated its sanctions in opposition to Twister Money.

Whereas 2024 did report a modest rise in transactions in relation to 2023 (c. 21,000 vs 16,000), 2025 witnessed a major enhance in utilization, as complete transactions rose to roughly 32,000.

This compares with roughly 38,000 in 2022 (and 2020), whereas each day numbers climbed near 300 in late 2025, having topped 450 simply previous to August 2022.

Customers on the transfer

Numbers have been steadily recovering, but Wu and Bear report that customers have shifted to different platforms, and that Twister Money’s previously dominant market share has recovered solely modestly since March of final yr.

Railgun, which makes use of a ‘proof-of-innocence’ system to test deposits in opposition to blacklists, now accounts for 71% of all exercise.

It’s adopted by Twister Money (each Twister Traditional and Twister Nova), which accounted for 25% of transactions in 2025, after which by Privateness Swimming pools, which accounted for five% of all mixer transactions.

Just like Railgun, Privateness Swimming pools employs affiliation units to show that deposits got here from non-blacklisted sources, though it checks provenance previous to withdrawals.

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Whereas the expansion of Railgun and Privateness Swimming pools signifies a shift to extra compliant mixer protocols, the CCAF report notes that such platforms depend on exterior suppliers to flag addresses.

In different phrases, blacklists “are up to date dynamically as new exploits are recognized,” offering some alternative for dangerous actors to maneuver funds to (and from) them rapidly, earlier than it turns into inconceivable.

There may be some indication that transactions to and from mixers have accelerated within the post-2022 panorama: most transactions now happen inside 24 hours of pockets creation, whereas pre-2022 most transactions occurred after 24 hours.

Noting that “customers shifted dramatically towards quick deposits beneath 24 hours,” the article then goes on to state that such “quick behaviour is according to customers looking for to keep away from identification, a profile extra prone to embrace illicit actors.”

Additionally pointing to a probably illicit supply of transactions is the truth that, after the 2022 sanctions in opposition to Twister Money, deposits from centralized exchanges—which usually must adjust to KYC and AML laws—just about vanished.

Most deposits now come from unlabelled sources, that are addresses with no recorded entity associations, and which now account for 95% of all funding to mixers (up from 76% in 2020).

Whereas this will likely counsel that use of mixers stays predominantly illicit, the report’s authors do affirm that such platforms additionally entice vital numbers of official customers.

“Professional motivations for utilizing privateness instruments embrace private monetary privateness, safety from concentrating on (bodily assaults on crypto holders are a well-documented and rising drawback), and industrial confidentiality,” stated Wenbin Wu, who’s a Analysis Affiliate on the College of Cambridge’s Cambridge Centre for Various Finance.

The impact of sanctions

Talking to Decrypt, Wu emphasised that blockchains are “radically clear,” and that such transparency—and everlasting visibility—can lead official customers to hunt out mixers in sure instances.

But Wu additionally states that the 2022 sanctions had the considerably perverse impact of scaring off legit customers, whereas forcing dangerous actors to seek out new channels and protocols.

He stated, “The important thing discovering is that sanctions primarily deterred compliant customers whereas illicit actors tailored, initially to different mixers, and extra just lately to cross-chain bridges and decentralised exchanges altogether.”

Having stated that, Wu acknowledges that the sanctions imposed “significant operational prices” on illicit networks and precipitated the shift to compliant alternate options, offering much less scope for dangerous actors to function.

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He added, “The newer protocols like Railgun and Privateness Swimming pools, which display deposits in opposition to identified illicit addresses, are by design much less engaging to dangerous actors.”

CCAF’s report cites analysis from the Federal Reserve Financial institution of St Louis, which in a 2023 paper concluded that solely 30% of Twister Money visitors might be proven to have derived from illegitimate sources.

Nevertheless, there’s little question that mixers stay widespread amongst cybercriminals, with a 2025 paper from researchers on the College of Birmingham and the College of Sydney discovering that hackers continued to make use of Twister Money in 78% of Ethereum-related safety incidents between August 8, 2022 and March 21, 2025.