Tornado Cash Users’ 75000 USD Will Be Freeze

After the decision to put the Tornado Cash website on the US Treasury Department’s special sanctions list, it is estimated that 75000 USDC equivalent to 75000 USD of users of this platform will be frozen.

Tornado Cash was put on a special sanctions list by the US

As updated by Coincu News in an article, on August 8, the US government suddenly announced that it would list the Ethereum “mixer” website Tornado Cash on the sanctions list.

The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury claims that Tornado has been used since 2019 to launder more than $7 billion in dirty cryptocurrencies.

Being blacklisted means that all US citizens and entities will be banned from interacting with Tornado Cash.

According to a current estimate, this blacklisting decision will freeze more than 75,000 USDC ($75,000) belonging to Tornado users.

Tornado Cash is a trading “mixer” platform that allows users to deposit ETH or supported ERC-20 tokens. Tornado Cash will then mix this ETH and send it back to the user, essentially erasing almost completely the transaction traces of the funds to increase privacy.

But, also because of this, Tornado is often the destination of many hackers and scammers in the field of cryptocurrency. Typically, the attack on the Ronin bridge of Axie Infinity in March 2022, caused up to 622 million USD in damage and is holding the record as the most serious hack in the history of the crypto industry. The hacker then transferred the money to Tornado Cash and laundered it there.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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