Decentralized exchange dYdX blocks user accounts associated with Tornado Cash

Decentralized exchange (DEX) dYdX confirmed it had blocked customer accounts associated with Tornado Cash to comply with United States sanctions. The post Decentralized exchange dYdX blocks user accounts associated with Tornado Cash appeared first on CryptoSlate.

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NFT marketplace giant OpenSea has reportedly blacklisted a customer for interacting with Ethereum-based cryptocurrency mixer, Tornado Cash, which was recently sanctioned by the U.S. Treasury.

U.S. Treasury Department's move to blacklist Tornado Cash is still causing havoc in the cryptocurrency community. After discovering that some of its users had connected with Tornado Cash late on Wednesday, the decentralized derivatives exchange dYdX acknowledged that it had been impacted by the restriction.

Quick Take Less than 30% of Tornado Cash deposit originates from stolen funds and sanctioned entities, while a significant portion possibly comes from legitimate sources, according to Chainalysis. The number of unique users has dropped significantly after the sanction, whereas previous depositors rushed to withdraw their funds from the protocol.  Some privacy advocates sent ether to crypto notables via the sanctioned protocol without their consent, as cryptocurrency wallets cannot reject incoming payments.

Tornado Cash, often known in the crypto money industry for news of attacks and fraud, has recently received a hard blow from the US Treasury Department. While the Ministry imposed sanctions by adding Tornado Cash to the backlist, many companies followed his practice.

DyDX has blocked user accounts linked with Tornado Cash DyDX has joined a growing list of platforms who have been actively blocking user accounts of people who had earlier been in contact with sanctioned Tornado Cash app In an updated blog post, derivatives protocol DyDX has confirmed that it has banned certain user accounts that previously had ties with now banned ethereum mixer app Tornado Cash.

The U.S. Department of Treasury has listed Tornado Cash on the List of Specially Designated Nationals and Blocked Persons (SDN) and prohibited American persons from using the service. Sanction violations can result in a $330,947 civil penalty as well as up to 30 years in prison.

While the cryptosphere has rallied around the decentralized mixing protocol, some are underestimating the long-term impact of US sanctions.  The post Treasury sanctions on Tornado Cash extend far beyond the US appeared first on The Block.

Tornado Cash transaction volume increased between Monday and Tuesday in spite of US sanctions. The post Despite sanctions, crypto traders are still using Tornado Cash appeared first on The Block.

An anonymous user has been sending small amounts of Ethereum via Tornado Cash to hundreds of public wallets in the U.S., including popular celebrities.  Flouting Tornado Ban An act of rebellion or just random trolling - the antics of the anonymous user have wrongfully implicated celebrities like Jimmy Fallon, Logan Paul, and Steve Aoki in a regulatory mess.

Circle and Coinbase restrict movement of USDC funds from Tornado Cash, as announced by Circle co-founder and CEO Jeremy Allaire announced on Twitter. This action was taken one day after the Office of Foreign Assets Control of the U.S. Department of the Treasury sanctioned the virtual currency mixer (OFAC).