Tornado Cash Fear Sucks This Altcoin: They Even Banned TRON Founder Justin Sun!

DeFi world, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) cryptocurrency mixing service provider To Tornado Cash suffered a setback after sanctions were imposed.

Several Twitter users today, the DeFi lending giant of aave It turned out that it also blocks addresses linked to Tornado Cash.

Randomly to ENS addresses of famous people, 0.1 from sanctioned addresses ETH was reported to have been sent. In response to this Uniswap, aave and balancer DeFi platforms like Tornado Cash have blocked accounts that receive funds.

Aave Blocks Addresses Receiving Funds From Tornado Cash

Wallet addresses of prominent users such as Tron founder Justin Sun, Sassal0x, and Cobo crypto custody co-founder Shixing Mao have been blocked by Aave.

According to PeckShieldAlert, 0.1 ETH was sent from sanctioned ETH contracts to over 600 addresses.

People believe that “decentralization in DeFi” is in trouble, as DeFi platforms like Aave, Uniswap, Balancer, dYdX, Alchemy, and Infura block addresses. So much so that platforms such as Discord and Github have also removed all services related to the platform in question.

This is considered to be a major risk of decentralization. Because investors who deposit their money on these platforms because they are decentralized, “Where is the decentralization of this?” in the face of blocked accounts. he asks questions.

On the other hand, one of the Tornado Cash developers was arrested in the Netherlands yesterday. The crypto community condemned the arrest of open source software developers by the authorities.

The Tornado Cash incident also damaged the decentralized nature of stablecoins USDC, DAI, FRAX. Circle has restricted the movement of USDC funds by blacklisting all sanctioned wallet addresses and relying on OFAC’s enforcement decisions.

*Not investment advice.