Circle freezes Tornado Cash smart control addresses

Emitters Stablecoin can blacklist the interaction with Tornado Cash Dapp at the Ethereum smart contract. ##Meters of Stablecoin may make an interaction with Tornado Cash Dapp. At the level of smart contracts Ethereum. ## Blockchain, Cryptocurrencies, Technology, Regulation

Cryptodata aggregate Dune Analytics reported that on Monday, Circle, an issuer of the stable coin of USD Coin (USDC), froze the funds worth more than 75,000 USDCs associated with 44 addresses of Tornado Cash, which fell into the list of specially assigned citizens and blocked persons (SDN ) The US Foreign Assets Office. Tornado Cash is a decentralized application, or DAPP used to conceal traces of previous cryptocurrency transactions on the Ethereum blockchain. All individuals and legal entities of the United States are prohibited from interacting with the addresses of the USDC mixer and the Ethereum smart contract, included in the SDN list. Punishments for intentional non -compliance may vary from fines of $ 50,000 to $ 10,000,000 and 10 to 30 years in prison. Currently, Tornado Cash smart contract addresses store assets worth about $ 437 million, consisting of stablecoins, Ethereum and wrapped bitcoin (WBTC). In this regard, issuers should take measures to prevent transactions or repay such assets. Organizations standing behind the USDC and Tether can freeze the translations of their stablcoins in Tornado Cash and vice versa at the level of the Ethereum smart contract. Meanwhile, Bitgo, located in Palo Alto, California, theoretically, will also limit access to Tornado Cash to comply with such sanctions. One of the possible methods is the suspension of the repayment of WBTC tied to Tornado Cash. According to the pseudonymous teacher Defi BowTiediguana, new sanctions against Tornado Cash are extended to all individuals and legal entities of the United States. Simple actions, such as Gitcoin donations, work in the project, starting or loading its software, visiting its website, replenishing the account/withdrawal of funds from smart contracts can be interpreted as violations. Circle has just froze 75,000 USDCs belonging to the unsuspecting Tornado users, as well as 149 USDCs donated to the project. - Banteg (@bantg) August 8, 2022