- The US Treasury Department releases new guidance on its controversial Tornado Cash sanctions. Cryptobriefing reports.
- Legal users in the US can now apply for a license from OFAC – an arm of the Treasury Department – to withdraw their funds from the platform.
- In addition, it is not forbidden to interact with the open source code. This means that users can copy it, share it and incorporate it into publications. Visiting the website is also not prohibited.
- OFAC sanctioned Tornado Cash on August 8, 2022. All user funds were frozen and use made illegal.
- The accusation: The platform is mainly used by North Korean and Russian hacker groups for money laundering. All facts and background information here.
- The case caused an uproar in the industry. Many key crypto figures complied with the sanctions but publicly criticized the decision harshly, including the CEO of Circle, the second largest stablecoin.
- The sanction is an attack on the right to privacy in Web3.0 and a unique historical decision, according to the criticism. No smart contract had ever been banned before.
- The founder of the platform was arrested a little later in the Netherlands. According to rumors, he is said to have worked with Russian secret services.
- Coinbase recently even supported lawsuits against OFAC by affected victims.
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