Cryptocurrency

Decentralized exchange dYdX blocks user accounts associated with Tornado Cash

Decentralized Exchange (DEX) dYdX Confirmed To comply with US sanctions, we blocked customer accounts associated with Tornado Cash.

dYdX has compliance providers that help flag addresses associated with illegal activity. In an instance of sanctions, dYdX blocked several accounts flagged by compliance providers.

“Many accounts were blocked because a certain portion of the wallet funds (often even an insignificant amount) was associated with Tornado Cash, which was recently added to the sanctions list by OFAC of the US Department of the Treasury. I did.”

Due consideration was given to account holders who were unjustly blocked. Others were involved not directly with Tornado Cash, but because they had previously received funds from the associated account.

As a remedy, dYdX hinted at making some adjustments to unban these accounts.

“We have made adjustments within our compliance policy and have unbanned certain accounts. We will continue to limit flags and continue our efforts to track this issue.”

Meanwhile, customers continue to maintain custody of their funds and are free to withdraw them at any time.

Tornado Cash is counting losses

A privacy-preserving protocol that advanced many noble ends, including helping the co-founders of Ethereum Vitalik Buterin Anonymous donations to the Ukrainian war effort are now victims of blacklisting and suspension.

USDC issuer Circle has been sanctioned by the US Treasury by freezing all USDC funds connected to blocked addresses. Enabled a “blacklist feature” that prevents all funds held in wallets from being transferred on-chain indefinitely.

Tornado developers have also removed their Github repository from the platform. Tornado Cash co-founder Roman Semenov lamented in a tweet:

Tornado Cash has remained in stealth mode since the sanctions began. However, his 7000+ members of the community are active on Telegram.

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