Ethereum (ETH) Tornado Cash, a service that allows transactions to take place more anonymously, is a US-sanctioned service. cryptocurrency explained the solution they found to prevent their addresses from using their services.
US Sanctioned Cryptocurrency Accounts Will Not Be able to Use Tornado Cash
According to the statement made by the Tornado Cash team on Twitter, the platform stated that from now on, crypto money addresses sanctioned by the US Office of Foreign Assets Control (OFAC) will not be able to use their own services.
The platform announced that it is collaborating with Chainalysis, one of the largest crypto analytics companies in the world, to implement the new restrictions. Tornado Cash will feature an oracle created by Chainalysis.
The crypto community has speculated on how the latest new censorship will work tactically.
It has been reported that the sanctioned crypto addresses will not be able to access the interface of the protocol, however, the smart contracts architecture will not be affected.
Tornado Cash uses @chainalysis oracle contract to block OFAC sanctioned addresses from accessing the dapp.
Maintaining financial privacy is essential to preserving our freedom, however, it should not come at the cost of non-compliance.https://t.co/tzZe7bVjZt— 🌪️ Tornado.cash 🌪️ (@TornadoCash) April 15, 2022
The Founder of the Platform Made a Statement on the Subject
Roman Semenov, one of the founders of the Tornado Cash platform, said the following about the motivation behind their decision and stated that a more complex mechanism will be integrated into the system soon:
“The RPC call was a faster method to implement the transaction. Chainalysis also has sanctions scanning API. We have applied to gain access to it, but have yet to receive a response.”
The platform had recently blocked the crypto money addresses of the North Korean hacker group Lazarus, which is claimed to be the group behind the Ronin hack.
*Not investment advice.