The Tornado Cash DAO has been taken offline after several social media users reported that the community was discussing ways to defy sanctions recently imposed by the US Treasury’s Office of Foreign Assets Control.
At the time of publication, it was revealed that the Tornado Cash DAO was offline as community members voted unanimously to make the governance layer a signatory to the Treasury’s multi-sig wallet. reported 21.6 million dollars. It was unclear what was responsible for the blackout of the Decentralized Autonomous Organization (DAO), but it followed actions by various authorities and private entities in the wake of US sanctions on Monday’s controversial mix.
In the past four days, Circle has blocked more than 75,000 USD Coin (USDC) in addresses listed by Treasury officials, dYdX said it closed some users’ accounts linked to Tornado Cash, and Alchemy and Infura.io blocked remote control. Process call requests to CryptoMixer. On Friday, authorities responsible for policing financial crimes in the Netherlands announced the arrest of a developer involved in money laundering through Tornado Cash.
The actions of centralized companies have extended beyond transactions involving crypto exchanges and into social platforms. On Monday, Tornado Cash founder Roman Semenov had his developer platform GitHub account suspended, and Discord users reported. There is a mixer channel It was dark on Friday. At the time of publication, the Tornado Cash Telegram group was still active.
Here is a list of blocked Tornado Cash resources
– Tornado Cash @GitHub Organization
– Personal @GitHub Accounts of TC contributors
– all of them $USDC On Tornado Cash Contracts @circlepay
– @infura_io Rpc
– @AlchemyPlatform Rpc
– https://t.co/SHvgEjTOMV domain @eth_limo
– ️ Tornado.cash ️ (@TornadoCash) August 9, 2022
It’s unclear why seemingly neutral channels, including Discord, are being taken down in response to US sanctions. However, according to a joint statement from the Federal Financial Institutions Examination Council and the Office of Foreign Assets Control, Tornado Cash’s inclusion on a specially prepared national list of prohibited transactions may include “downloading software patches from an authorized party.” Penalties for non-compliance can include heavy fines and jail time.
Related: Controversial Tornado Cash open sources UI code
Omid Malekan, an assistant professor at Columbia Business School who teaches cryptocurrency and blockchain, is the first US government to criminalize dealing with the software. “This is a big departure from traditional regulations against people, companies and governments. There is evidence that the project in question has been used by criminals/hackers to hide their money, but there are also many legitimate uses.
Before the sanctions were imposed, Ethereum founder Vitalik Buterin said TornadoCash used the funds to donate to Ukraine in order to ease the financial privacy of recipients in the middle of the war-torn country. On Tuesday, an anonymous individual used CryptoMixer to send Ether (ETH) to several celebrities in an apparent attempt to defy the severity of the ban.