The motion is part of a broader effort to restore internet privacy rights for U.S. citizens.
Latest Ethereum Blocks Suggest Validators Are Reversing Censorship
Non-censoring relays such as Agnostic and ultra sound are delivering more data blocks on Ethereum than Flashbots, the one-time king of MEV-delivering relays.
Tornado Cash Fork, Privacy Pools, Deployed on Optimism Testnet
Privacy Pools uses zero-knowledge proofs to prove that funds in anonymous transactions are not linked to criminal activity, such as North Korea’s $625 million hack on Axie Infinity.
Crypto Crime Hit All-Time High of $20.6B in 2022: Chainalysis
Kim Grauer, the blockchain sleuthing firm’s head of research, told CoinDesk TV sanctioned activity and hacking were the driving forces behind the rise in illicit transaction volumes last year.
Fewer Than Half of New Ethereum Blocks Over the Past 24 Hours Are OFAC Compliant
For the first time since October, fewer than 50% of blocks added to the Ethereum blockchain over a 24-hour period are OFAC compliant, partially thanks to more non-censoring options that make up a larger share of the blockspace market.
Treasury officials would have done more for national security by leaving Tornado Cash alone
Tornado Cash contributes to our national security interests more than it undermines them.
Tornado Cash Sees Drop In Activity After U.S. Treasury Sanctions – What Now For TORN?
The value of Tornado Cash is decreasing, not due to market factors but because of recent controversies. The Office of Foreign Assets Control recently added Tornado Cash to its list of Special Designated Nationals. That means no one from the United States may use the token.
By taking this action, OFAC has effectively banned Tornado Cash from participating in one of the most important cryptocurrency markets.
Many owners of Tornado Cash’s native coin, TORN, also liquidated their investments in response to the news. From its high closing of $30.25 on August 7th, TORN has fallen 87.03% to its current price.
Tornado Cash Linked To Nefarious Activities
Even before the OFAC decided to add Tornado Cash to its special list, TORN had been linked to multiple high-value crypto crimes.
The Lazarus Group, perpetrators of one of the largest crypto thefts in history, employed TORN as part of their plot to conceal the true origin of their stolen funds. The breach was carried out on the Ronin Network, an Ethereum-based sidechain.
In March of 2022, the network hosted game Axie Infinity, which saw its highest player count. Because of this, malicious actors like the Lazarus Group were able to zero in on the system and the game with relative ease. The theft led to the loss of 173,600 Ether and 25.5 million USDC.
The total dollar amount is $625,000,000. Later this year, the OFAC will penalize the project and all connected wallets due to this attack.
Chart: TradingView.com
Sanctions Deal A Heavy Blow On TORN
It is hardly surprising that criminal actors have used Tornado Cash to launder stolen cryptocurrency. In the DeFi domain, mixers are special programs that ostensibly enhance privacy by blending transactions, so obscuring the money’s path from point A to point B.
In 2019, more than $7 billion worth of cryptocurrency was laundered using Tornado Cash, according to a U.S. Treasury Department report.
As of this writing, the sanctions have a significant impact on TORN. According to a source, there are currently only 100 unique users on the network.
After the announcement of the sanctions, transactions in excess of $100,000 became practically nonexistent.
TORN is trading just above the 38.20% Fib retracement level at the moment. This level will support the price of the crypto due to the close correlation between the buying and selling quantities of bulls and bears.
As the sanction dismantles the project, it is only a matter of time till it hits zero.
Crypto total market cap at $918 trillion on the daily chart | Source: TradingView.com
Featured image from The Daily Hodl, Chart: TradingView.com
45% of ETH validators now complying with US sanctions — Labrys CEO
Labrys CEO Lachlan Feeney is trying to raise awareness amongst validators running Flashbots’ software that they may potentially be contributing to censorship within the Ethereum network.
Tornado Cash left a void, time will tell what fills it — Chainalysis chief scientist
There’s a hole to be filled where Tornado Cash once was, and “junior mixers” are vying for position in the wake of the mixers sanction and ban by the U.S. Treasury.
US sanctions agency OFAC to rely more heavily on Chainalysis
Govt agencies want more tools to trace suspect crypto transactions.
BitPay to Pay $500K to Settle OFAC Sanction Violation Charges
BitPay is accused of facilitating over 2,100 transactions with individuals in sanctioned nations.
Virgil Griffith Still Doesn’t Know What Exact Crimes He Is Accused of, Attorneys Say
Attorneys for Virgil Griffith want the U.S. government to specify the charges he’s facing, rather than a broad claim that he violated U.S. sanctions.
Ethereum Dev Virgil Griffith’s Attorney Files Motion to Dismiss Charges of Aiding North Korea
The motion, filed by Brian Klein, claims the indictment of Griffith doesn’t “specify any alleged overt facts,” and contains no actual allegation of fact.
OFAC Warns That Firms Helping Victims With Ransomware Payouts Risk Violating Its Rules
If you assist a ransomware victim in paying out to cyber attackers, you could end up facing civil penalties, OFAC says.
US Sanctions Two Russians Accused of Using Fraud to Steal Millions in Crypto
The pair stole $16.8 million from customers of three different crypto exchanges, including two in the US.
US Treasury Sanctions Russians Using Crypto for Election Interference
The U.S. Treasury Department Office of Foreign Asset Control has added three Russian nationals and a host of cryptocurrency addresses to its sanctions list.
US Agency Says Chinese Drug Traffickers Used Bitcoin to Launder Proceeds
The U.S. Office of Foreign Asset Control has sanctioned four Chinese residents, claiming they helped launder drug proceeds using bitcoin.
USA vs. Virgil Griffith: What We Know (and Don’t) in the Bombshell Crypto Sanctions Case
Prosecutors appear to have a strong case against Virgil Griffith, the ethereum developer charged with conspiring to aid North Korea, legal experts say.
Bittrex Will Release Frozen Crypto to Former Users in Sanctioned Regimes
Crypto exchange Bittrex is looking to return crypto holdings to customers in sanctioned nations, but there are conditions.
US Treasury Blacklists Bitcoin, Litecoin Addresses of Chinese ‘Drug Kingpins’
The U.S. Treasury’s OFAC has put bitcoin and litecoin addresses of three Chinese nationals on its sanctions list, the second time the agency has blacklisted crypto wallets.