Tornado Cash Stops Servicing Sanctioned Crypto Addresses
Users of the cryptosphere subject to US Treasury sanctions will no longer be able to use the Tornado Cash cryptomixer.
In a tweet, company representatives noted that they are now using the oracle of the data provider Chainalysis. With it, all addresses will be checked for absence in the OFAC sanctions list. This office is a division of the US Treasury.
Tornado Cash uses @chainalysis oracle contract to block OFAC sanctioned addresses from accessing the dapp.— 🌪️ Tornado.cash 🌪️ (@TornadoCash) April 15, 2022
Maintaining financial privacy is essential to preserving our freedom, however, it should not come at the cost of non-compliance.https://t.co/tzZe7bVjZt
Representatives of Tornado Cash emphasized that maintaining privacy in the cryptosphere should not go against the law. They also attached a link to Etherscan, which at the time of writing added 4 sanctioned addresses that will not be able to use the services of the cryptomixer.
It is worth noting that the reaction of representatives of Tornado Cash followed the exposure of the hacker behind the hacking of the Ronin blockchain of the popular game Axie Infinity. According to the US Department of the Treasury, the culprit of the theft is the North Korean Lazarus Group.
Last week, hackers began laundering stolen funds, including through Tornado Cash. After identifying those involved in the hack, the address to which the funds were withdrawn was added to the sanctions list.
Chainalysis immediately added it to their products, including oracles. And now Tornado Cash has joined the blocking. True, company representatives reported that interaction with the oracle blocks only access to the interface. However, access to the smart contract remains.
According to one of the founders of the service, it is technically impossible to apply sanctions to decentralized protocols. Interaction with the cryptomixer is carried out automatically, without human intervention, using a written program code. And the development team has no more access to the service than a simple user.
About Tornado Cash
The project appeared in 2019. He gained fame as a mixer that allows you to break the addresses of the sender and recipient of cryptocurrency funds. Unfortunately, he has gained notoriety due to frequent money laundering attempts. For example, in early 2022, it was used by scammers who hacked into Crypto.com and stole $34 million.
Despite this, the refusal to service the sanctions crypto addresses caused a negative reaction in the crypto community. Many have lamented that government censorship undermines the decentralized nature of cryptocurrencies.
Moreover, Tornado Cash is not the first cryptomixer to be censored. A month earlier, Wasabi mixer developers announced their intention to block some addresses.
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