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Top cryptocurrency news: The circle blacklists The smart contract for Tornado Cash addresses

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On the level of an Ethereum smart contract, stablecoin issuers 

Can prohibit interactions with the Tornado Cash dApp.

The 44 Tornado Cash addresses that were sanctioned by the Specially Designated Nationals and Blocked Persons (SDN) list maintained by the U.S. Office of Foreign Assets Control (OFAC) were linked to over 75,000 USD Coin stablecoin (USDC) on Monday, according to crypto data aggregator Dune Analytics. A decentralised application (dApp) called Tornado Cash is used to conceal the history of prior cryptocurrency transactions on the Ethereum blockchain.

The USDC and Ethereum smart contract addresses for the virtual currency mixer on the SDN list are not accessible to any U.S. individuals or companies. Willful disobedience is punishable by fines of $50,000 to $10,000,000 and jail terms of 10 to 30 years. Stablecoins, Ethereum, and wrapped Bitcoin (wBTC) totaling around $437 million are now held in Tornado Cash's smart contract addresses. Because of this, issuers are required to take measures to stop the sale or redemption of such assets.

On the level of an Ethereum smart contract, both the organisations behind USDC and Tether have the ability to halt stablecoin transfers to and from Tornado Cash. In order to comply with such restrictions, BitGo, situated in Palo Alto, California, would also possibly need to limit access to Tornado Cash. Suspending the redemption of wBTC tied to Tornado-Cash is one option.

 

According to DeFi instructor @BowTiedIguana, the new Tornado Cash sanctions apply to all people and organisations in the United States. Simple actions like making donations using Gitcoin, working on the project, using or downloading its software, accessing its website, and depositing into or withdrawing from smart contracts could all be seen as infractions.



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