Tornado Cash Incident: Crypto community fights back against the ban

Many crypto and privacy advocates are trying to fight back against the United States Treasury‘s decision to ban the popular crypto mixer service Tornado Cash.

Tornado Mixer

Most recently, the Electronic Frontier Foundation, a nonprofit organization protecting civil liberties in the digital world, has expressed concern about the Treasury’s sanctions against an open source computer project.

The digital rights organization in a series of tweets mentions its views, 

The statement by the EFF comes as GitHub, a Git repository hosting service, suspended the account of Tornado Cash developer Roman Semenov in reaction to the sanctions and also removed the source code for Tornado Cash.

As reported, the US Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Tornado Cash on August 8 for its alleged role in money laundering procedures.

Originally, some users noted that this move would only punish US users while real criminals can continue to operate the mixing service. This new legislation is only affecting Americans. It is a sanction on Americans, but not the alleged bad actors, said ETH advocate and software engineer Adriano Feria a few days ago.

An investor who goes by the id RYAN SEAN ADAMS mentions that the sanctions violate the first amendment:

Furthermore, Coin Center, a crypto non-profit that focuses on the policy issues facing cryptocurrencies, has affirmed that it is preparing a court challenge to the ban on Tornado Cash.

Jerry Brito and Peter Van Valkenburgh, respectively Coin Center’s executive director and director of research, wrote in their article that by treating autonomous code as a ‘person’ OFAC exceeds its statutory authority.

In the article, the duo mentioned that the community didn’t fight back when the Treasury sanctioned crypto mixer Blender, because it is an entity that is ultimately beneath the control of certain individuals.

On the other hand, the authors asserted that the statement against Tornado Cash does not make sense because it can’t be said that Tornado mixer is a person subject to sanctions, highlighting the contradiction of anointing a smart contract as a sanctionable entity.

Therefore, they also mentioned that they intend to work with other digital rights advocates to pursue administrative relief. And are also exploring ways of bringing a challenge to this action in court.

A Twitter user expressed his views on the incident highlighting some recent scams,

Also read, Netherlands FIOD made an arrest in Tornado Mixer case

A recent report by Global Ledger, a Ukrainian start-up that helps specifies the origins of Bitcoin (BTC) transactions and supplies banks, crypto, and fintech companies with anti-money laundering (AML) compliance software, asserted that hackers are accountable for only a small percentage of Tornado Cash transactions.

After examining 181,164 transactions carried out in two Tornado proxy servers, the company was able to directly trace the connection between distinctive cybercrime and TornadoCash in 7.73% of all these transactions.

As worries surrounding the Tornado mixer pile on, users continue to pull out their assets from the mixing service. Tornado Cash’s total value locked (TVL), which was over USD 460.6m on 8 August, has dipped to USD 341.93m, according to DeFi Llama.

The increasing concerns have also pushed the signatories of Tornado’s multisignature community fund to dissolve their positions. Peer-elected members in charge of the fund have emptied their posts and handed control to the project’s decentralized autonomous organization (DAO).

Hungry for more information?

NFT Calendar from NFTHi

Check out the Latest NFT News!

For more interesting updates on NFTs, connect with NFTHI on Twitter and Instagram.

Join us on Telegram!

NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.

Conduct thorough research before you start with NFTs

Share This Post

Related Posts

The Sandbox Explores New KYC Rules To Stop Cheating

After recent objections by speedrunners in the gaming community,...

TCL taps into the Metaverse

Last week, TCL Electronics (1070. HK), a prominent player...

Polygon brings in a new Web3 Native Communication network

Push Protocol, a decentralized communication network formerly known as...

Warner Records UK & Bose tease Audio-Visual Stickmen Toys NFT Collection

Warner Records UK and Bose have joined forces to...

NBA Top Shot All-Time Sales Exceed $1 Billion Despite NFT Market Decline

Dapper Labs' NBA Top Shot has recently broken the...

GameStop Taps Into NFT Domain Despite Market Crisis

GameStop appears to be the last place people think...