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Major DeFi Protocol Blocks Accounts Linked To Tornado Cash

Followed by OFAC Ban on Tornado CacheAave, Uniswap, Balancer, Ren and Oasis are blocking all addresses associated with Tornado Cash, regardless of type.

In other words, a wallet that receives funds from Tornado Cash. is also blockedwhether you agree to receive funds.

Many prominent users have fallen into a fickle rift and received their sanctioned Ethereum from Tornado Cash.According to last week’s report, a series of wallet Tornado Cash has sent 0.1 ETH to your address.

what a strange thing

The list of recipients consists of Vitalik Buterin, Justin Sun, Ben Horowitz, Beeple and centralized exchanges like binance, coin baseKraken, Gemini, Bittrex, etc.

The prank didn’t get these people to sanction the offenders, but it did lead to another problem.

Justin Sun reported on Saturday that his account has been officially blocked on the frontend by the Aave protocol.

Anthony Sasano, a prominent figure in the Ethereum community, said on the same day that access to Aave was also blocked. It’s worth noting that Sun owns most of his TVL for the protocol.

With the latest update, a user said his account was back.

According to Aave’s official statement, the team followed a regulatory decision by implementing TRM Labs’ API to block addresses that interact with mixing tools.

This run erroneously affected users who recently received a Tornado-derived “gift”.

many questions remain

The community began questioning Aave’s approach as it didn’t appear to be fully “decentralized” due to the lack of DAO voting. Aave claims the protocol will remain decentralized and managed by the DAO.

in short,

“The top priority of the Aave team is to build a safe and secure system for our users. We have integrated TRM’s API into the Aave IPFS frontend so that users who cannot access the Aave app, one of the frontends of the Aave protocol, there may be.”

The reputation of DeFi projects has plummeted a bit due to recent centralized actions. Maker founder Rune Christensen has announced that developers and heads of the DeFi sector have joined a call to approach the Tornado Cash case.

Meeting participants include Circle (USDC), Maker, coinbase exchangeUniswap, Aave, Compound, and dYdX.

In the meantime, one of the most pressing concerns is the possibility of malicious actors weaponizing Tornado Cash to prevent users or project wallets from accessing dApps.

Blanket block wallets by Aave or similar dApps could lead to dangerous situations for legitimate cryptocurrencies and NFT projects Because there is no way to decline incoming Tornado Cash transactions.

These situations can put your project at risk of shutting down.

Tornado cache on fire

Tornado Cash has made numerous headlines after being blacklisted by the US Treasury Department a week ago.

The news sparked controversy within the DeFi community, with some members agreeing with the government’s decision and others disagreeing.

Ethereum mixing tools have gained a lot of popularity because they are open source and fully decentralized. This allows the user to deposit ETH or any other of his ERC-20 tokens that are supported.

Ethereum is then sent back to the user by the project in a mess. At this point, the user’s financial transactions are virtually erased almost completely, increasing the level of privacy.

Following the shutdown order issued by the US, many entities within DeFi and blockchain arrays blocked TC transactions.

These entities included USDC stablecoin issuer Circle, RPC providers such as Infura and Alchemy, the dYdX exchange, and the Oasis wallet.

Website host, GitHub, Discord, web host The project’s DAO community and others have also stopped offering the Tornado Cash cryptocurrency.

Even USDC stored in Tornado Cash wallets was frozen by Circle, sparking a dispute over centralization issues.

To reduce the possibility of user funds being frozen, a stablecoin initiative known as DAI being developed by Maker may decide to remove USDC from its list of collateral assets.

The situation became even more dire when Dutch authorities announced in a statement that the developer of Tornado Cash had been arrested on suspicion of engaging in activities related to money laundering.

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https://blockonomi.com/major-defi-protocols-block-accounts-linked-to-tornado-cash/ Major DeFi Protocol Blocks Accounts Linked To Tornado Cash

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