DeFi

Aave Blocking All Addresses Linked To Tornado Cash, Including Justin Sun

0.1 ETH was apparently sent to well-known ENS accounts from sanctioned addresses. DeFi platforms such as Uniswap, Aave, and Balancer have blocked accounts that received payments from Tornado Cash in reaction.

Aave has restricted the wallet addresses of renowned users like Tron founder Justin Sun, Sassal0x, and Shixing Mao, co-founder of Cobo crypto custodian.

According to PeckShieldAlert, over 600 addresses, including persons and centralized exchanges, have received 0.1 ETH via the Tornado Cash 0.1 ETH contract.

People believe “decentralization in DeFi” is in jeopardy due to the blocking of addresses by DeFi platforms such as Aave, Uniswap, Balancer, dYdX, Alchemy, and Infura. Indeed, platforms such as Discord and Github have withdrawn services associated with the cryptocurrency mixer.

It poses a significant decentralization danger. The government does not regulate these blockchain-focused businesses. As a result, sharing data or following rules without regulation undermines the entire point of decentralization.

Furthermore, one of the Tornado Cash developers was detained yesterday in the Netherlands. The crypto community condemns authorities detaining open-source software creators.

Users can still access the wallet by using a different front end because the dApps have just restricted the front end. However, it is unclear whether DeFi systems would prohibit these addresses at the smart contract level.

Furthermore, numerous firms and organizations banned it after the US Treasury Department’s Office of Foreign Assets Control placed Tornado Cash on its Specially Designated National list.

This leads us to the crux of the issue. Aave’s blanket ban on all Tornado Cash-related activities appears to be a hoax, especially as such a restriction could hurt intermediaries who have nothing to do with the problem. A trick like this might shatter the entire cryptosphere’s trust.

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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.