Tag: Cash

Tornado Cash ban could spell disaster for other privacy protocols — Manta co-founder

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There are mounting concerns that recent United States government sanctions against Tornado Cash will become a “slippery slope” for Web3 privacy that could eventually make the entire space “meaningless.” Speaking to Cointelegraph, Shumo Chu, co-founder of privacy protocol Manta Network expressed worry that the strict sanctions against Tornado Cash could have a knock-on effect on every Web3 protocol including ones providing privacy. Chu is one of the co-founders of Polkadot-based Manta Network, a layer-1 privacy protocol that enables private transactions in decentralized finance (DeFi). Tornado Cash (TORN) is an Ethereum…

Tornado Cash Sanctions May Harm Innocent Users

It would appear that recovering his funds would, right now, constitute a sanctions violation. At a minimum, there is no clarity. To many, the sanctions appear to either have been a heartless move, forsaking the privacy needs and financial integrity of innocent users, or to have been a thoughtless one. Source

Tornado Cash Sanctions Are Spiraling Into Compliance Nightmares

Between Aug. 7 and Aug. 13, users sent in about 11,000 ETH (so this figure went down week-over-week) and sent out … 49,852 ETH. Tornado was sanctioned on Aug. 8, meaning the week-over-week figure nearly doubled. And it’s not that Aug. 7 (the night before the sanctions were announced) was particularly busy: According to Nansen, the inflow amounted to 2,738 ETH, and the outflow was about 1,400 ETH, so not a lot (relatively speaking). The outflow on Aug. 8 was 13,800, a full order of magnitude greater than the day…

USDT market cap up by $2 billion following Tornado Cash debacle

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The market capitalization of Tether (USDT) tokens has increased by nearly $2 billion since the U.S. Treasury Department imposed sanctions on cryptocurrency mixer Tornado Cash. The Office of Foreign Asset Control essentially barred Americans from using Tornado Cash on Aug. 8, blacklisting 44 USD Coin (USDC) and Ether (ETH) addresses connected to the service to a list of Specially Designated Nationals and Blocked Persons (SDN). OFAC alleges that Tornado Cash was used by individuals and criminal organizations to launder over $7 billion worth of cryptocurrency since 2019. Funds linked to…

Coin Center Says OFAC’s Tornado Cash Ban ‘Exceeds Statutory Authority,’ Plans to ‘Engage’ With US Watchdog – Bitcoin News

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On August 15, the non-profit that focuses on policy issues facing crypto assets, Coin Center, published a blog post that says the organization is looking at the legality of the recent Tornado Cash sanctions enforced by the U.S. Treasury Department’s Office of Foreign Asset Control (OFAC). The post, published by Coin Center’s Jerry Brito and Peter Van Valkenburgh, explains that by treating autonomous code as a ‘person’ “OFAC exceeds its statutory authority.” Coin Center Insists ‘OFAC Has Overstepped Its Legal Authority’ Coin Center’s executive director Jerry Brito and director of…

Cryptocurrency Advocacy Group Says Regulators Overstepped Authority by Sanctioning Tornado Cash

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Crypto advocacy group Coin Center is looking into challenging the U.S. Office of Foreign Assets Control (OFAC) over Tornado Cash sanctions in court. Coin Center communications director Neeraj K. Agrawal said on Monday that the group believes “OFAC has exceeded its statutory authority by sanctioning the Tornado Cash smart contract.” “We believe OFAC has exceeded its statutory authority by sanctioning the Tornado Cash smart contract. Coin Center is exploring a court challenge.” In Coin Center’s analysis of the case, the non-profit argues Tornado Cash has no control over its application. “Tornado Cash Entity…

Crypto Lender Celsius On Pace to Run Out of Cash by October

“They [Celsius] could obtain debtor-in-possession financing or sell assets,” Brandon M. Hammer, counsel at Cleary Gottlieb Steen & Hamilton, a law firm, told CoinDesk. “However, to take such steps they would need court approval, which requires notice and an opportunity for interested parties, like customers and the creditors committee, to object.” (Neither Hammer nor the law firm are involved in the bankruptcy case.) Source

Coin Center may challenge US Treasury’s sanctions on Tornado Cash in court

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United States-based crypto policy advocacy group Coin Center said it intended to “pursue administrative relief” for individuals affected by Tornado Cash sanctions imposed by the Treasury Department’s Office of Foreign Asset Control, or OFAC. In a Monday blog post, Coin Center executive director Jerry Brito and director of research Peter Van Valkenburgh alleged OFAC “overstepped its legal authority” when it named cryptocurrency mixer Tornado Cash and 44 associated wallet addresses to its list of Specially Designated Nationals, or SDNs, on Aug. 8. The directors claimed Treasury’s actions could have potentially…

Stop Attacking DeFi Founders for Complying With the Tornado Cash Sanction

Last week, Rune Christtensen, founder of MakerDAO, the issuer of the dai stablecoin, said the U.S. sanction will likely usher in a “new age” of DeFi. Whereas the pre-sanction period emphasized user acquisition and protocol growth, the new period would recenter decentralization as a primary goal. What this means is still in process, though Christensen suggested that Maker could de-peg its stablecoin from the U.S. dollar, which represents a wild departure from its existing project. Source