After the reports by several social media consumers that the Tornado Cash DAO was making a strategy to confront the recently imposed sanctions by the Office of Foreign Asset Control under the Treasury Department of the United States, the platform went offline. Presently, the venue was offline supposedly after a discussion among the community participants where they unanimously voted to incorporate the governance layer of the platform to the multisig wallet of its treasury, which reportedly organizes up to $21.6M.
Tornado Cash DAO Taken Offline
The factors responsible for the offline movement of the DAO are ambiguous up till now, nonetheless, it was witnessed after a list of operations (taken on the behalf of diverse private organizations and authorities amid the sanctions imposed on Monday within the United States) against the notorious mixer.
In the previous 4 days, up to 75,000 worth of USDC on addresses listed on the behalf of Tornado Cash were frozen by Circle, as dYdX stated that the accounts of a few customers had been blocked by it as some funds from Alchemy, Infura, and Tornado Cash were associated with them.
On Friday, the authorities dealing with the matter declared having caught the lead developer who supposedly had participated in money laundering via Tornado Cash. Centralized companies’ operations expanded further against the transfers done through the crypto mixer. On Monday, Roman Semenov (the co-founder of Tornado Cash) reported that GitHub had terminated his account. The Discord consumers pointed out that the mixer’s channel was additionally taken offline on Friday.
It is still unknown why Discord as well as the other neutral channels require being taken down while responding to the U.S. sanctions. Nevertheless, a joint statement was shared by the Office of Foreign Asset Control and the Federal Financial Institutions Examination Council, disclosing the prohibition of the transfers in which Tornado Cash was used. The punishments for a failure in abiding by the sanctions could take into account large fines as well as imprisonment.
Justin Sun’ Aave Address Restricted
In advance of the sanctions’ implementation, Vitalik Buterin (the co-founder of Ethereum) mentioned that Tornado Cash was utilized by him to make funds donations to Ukraine, targeting the recipients’ financial privacy within the country torn by war. Just sometime back, Justin Sun, the founder of a blockchain-based OS called TRON, shared on Twitter that someone sent some 0.1 ETH tokens from Tornado to his address on Aave and it was consequently restricted by the platform.