Tornado Cash Addresses Are Not Blocked By Tether

A freeze on secondary Tornado Cash addresses is premature in the stablecoin issuer’s opinion, and they are waiting for more information from American authorities.

Tether, a stablecoin issuer, confirmed its decision not to block Tornado Cash addresses, pointing out that it has not yet received any such demands from American authorities or law enforcement.

“Unilaterally freezing secondary market addresses could be a highly disruptive and reckless move by Tether,” said the company in a statement on Wednesday.

The organization that created the dollar-pegged stablecoin USDT declared that it would not block addresses connected to Tornado Cash until the Office of Foreign Asset Control (OFAC) of the U.S. Treasury Department did so. According to Tether, freezing any such addresses might interfere with ongoing regulatory investigations and be “extremely disruptive and dangerous.”

The U.S. agency blacklisted Tornado Cash earlier this month on the grounds that North Korean hackers were exploiting the protocol to carry out illegal transactions. The usage of the protocol or Ethereum addresses on the protocol is forbidden, according to the Treasury Department.

Tornado Cash smart contracts were blacklisted by Circle

Within hours after the sanctioning, Tornado Cash smart contracts were blacklisted by Circle, the creator of stablecoin USDC.

“We believe that, if made without instructions from U.S. authorities, the move by USDC … was premature and might have jeopardized the work of other regulators and law enforcement agencies around the world” said Tether.

Tether added that Tornado Cash addresses have not been frozen by Paxos, the company behind the stablecoins BUSD, USDP, and algorithmic stablecoin DAI, which holds 36% of its holdings in USDC.

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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