Control over the wallet management.
The signatories of the projects' multi-signature community fund disbanded when the United States imposed penalties on USD Coin (USDC) and Ethereum (ETH) addresses linked to the crypto mixer Tornado Cash (TORN).
The Tornado Cash community established a fund in 2021 to give rewards to significant project contributors. The money was kept in a multi-signature wallet that was community-managed, with five peer-elected members who were chosen for their contributions to the project authenticating transactions.
However, as using Tornado Cash became riskier and could result in fines of up to $10 million or prison sentences of up to 30 years for U.S. citizens, the community members in charge of the community fund resigned from their positions and turned over management of the fund to the project's decentralised autonomous organisation (DAO).
The signatories started to give up control over the fund's management on August 12th. The governance wallet became the fund's lone owner when all five of the multi-signature wallet's participants totally deleted their access on August 14.
Residents expressed their opinions on the topic of whether the U.S. Treasury Department had approved a code after being astonished by the development. According to a Twitter user, everything connected to the project can be viewed as a collaborator unless something changes. On the other side, another member of the community asserted that it's time for token holders to take charge and suggested that this might be a method to completely materialise the DAO.
An anonymous user decided to take advantage of the mounting concerns regarding Tornado Cash to give authorised ETH to well-known figures such Jimmy Fallon, Shaquille O'Neal, Dave Chappelle, and many other musicians. The transactions appear to be an attempt by the sender to fool law enforcement by drawing their attention to the receivers. However, as a successful case needs "wilful" participation with Tornado Cash, the act of obtaining the cryptocurrency may not wholly constitute justification for criminal charges.