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Tornado Cash Transaction Volume Soars Because Users Are Afraid Of The Treasury’s Sanctions

Tornado Cash Transaction Volume Soars Because Users Are Afraid Of The Treasury's Sanctions

The Tornado Cash mixer has seen a significant drop in deposits, indicating that users withdraw from the platform following US Treasury sanctions.

Tornado Cash Transaction Volume Soars Because Users Are Afraid Of The Treasury's Sanctions 3

According to data from The Block Research, since the ban was announced, only $6 million has been deposited into the protocol, down 78.5% from last week.

Users rushed to withdraw, increasing overall trading volume. There was $62 million withdrawn from the protocol, a 15% reduction in the amount of cryptocurrency stored in wallet addresses; $14.7 million was withdrawn in the first three hours alone.

Many platforms have denied involvement with Tornado Cash, and it is expected that many more names will do the same in the coming days. Specifically, Circle was ordered to freeze the 75,000 USDC contained in the sanctioned wallet addresses.

Tornado Cash Transaction Volume Soars Because Users Are Afraid Of The Treasury's Sanctions 4

In addition, GitHub decided to delete the accounts of Tornado contributors. Infura, Alchemy, and derivatives protocol dYdX also declined to involve Tornado Cash.

It can be said that Tornado Cash is currently the focus of US regulators when the platform has seen an increase in the amount of “illegal” trading money recently.

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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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.