Cryptocurrency mixer Tornado Cash works to block sanctioned addresses

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Cryptocurrency mixer Tornado Cash works to block sanctioned addresses For Hannah Perez

The incorporation of tools Chainalisys allows you to block sanctioned addresses. Although the lock only applies to the front-end, not the underlying smart contract.

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The popular cryptocurrency mixer from ethereum, TornadoCashhas been leading efforts to block sanctioned addresses.

In a Twitter post this Friday, the team at TornadoCash informed that you are using a tool developed by the compliance firm chain analysis to block the crypto wallet addresses sanctioned by the Office of Foreign Assets Control (OFAC), an agency of the United States Treasury. The media CoinDesk Y The Block they reviewed.

The protocol noted that uses the oracle of chain analysis for compliance with sanctions, a free smart contract that searches for cryptocurrency wallets sanctioned by various governments. In accordance with CoinDesksuch a sanctions screening tool was launched in March, in the context of the Russian invasion of Ukraine.

The incorporation by TornadoCash supposes that OFAC-listed digital currency wallet addresses will now not be able to use the mixer. Maintaining financial privacy is essential to preserving our freedom, however, it should not come at the cost of non-compliance.“, wrote TornadoCash in a tweet on Friday.

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However, the lock only applies to the front end, i.e. the user-facing decentralized application (dApp)not the underlying smart contract, as explained one of the founders of the protocol in Twitter.

Enforcement action is not new

Built on ethereum, Twister It is a decentralized protocol that improves transaction privacy by breaking the chain link between a source and destination address. Due to its ability to obfuscate cryptocurrency movements, it is often used by hackers to mask their addresses when laundering ill-gotten funds.

The project, which has come under fire as crypto regulations tighten, claims to uphold people’s financial freedom. For its part, its founder, Roman Semenov, has argued that the team has little control over what its users do with the protocol, since it is designed to be autonomous and outside the control of developers.

In a recent interview for CoinDeskSemenov said it was “technically impossible” impose sanctions on decentralized protocols such as TornadoCash. There’s not much we can do“, he added.

In an article this Friday, CoinDesk indicated that the mixer measure to restrict addresses from access front end is not new. According to that medium, a former agent of the DEA, the US agency that fights drug smuggling, had already revealed in January that TornadoCash meets the list of cryptocurrency wallets sanctioned by OFAC.

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In accordance with The Block, TornadoCash believe a contract to block addresses sanctioned more than a month ago, and, hSo far, he has blocked a total of 24 addresses.

Will it drive away the bad actors?

The news comes a day after the US Treasury linked the group to North Korean hackers Lazarus with the USD $625 million attack on the network roninfrom Axie Infinity.

According to reportsthe hackers had already laundered about 80 million dollars through the mixer TornadoCash. The incorporation of the wallet involved in the attack ronin to the OFAC sanctioned entities list on Thursday, will now prevent perpetrators from continuing to use the protocol to transfer stolen funds.

However, some users have not been receptive to the protocol measures. In Twitter, several came out to criticize the move, suggesting that blocking sanctioned addresses did not mean that bad actors could not use the service. as picked up The Blockthey argued that the hackers keep using Twister if they send the coins to other addresses.

Other decentralized protocols like uniswap Y 1inch have also moved to comply with regulations from USA uniswap has removed a large number of tokens that could represent security or derivative offerings, while 1inch has begun tracing IP addresses from that country.

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Article by Hannah Estefanía Pérez / DailyBitcoin

Unsplash image edited in Canva

WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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