Here is why the activities of Tornado Cash were not fully set after OFAC sanctions

Here is why the activities of Tornado Cash were not fully set after OFAC sanctions

The attempt by the Office of Foreign Assets Control (OFAC) with the crypto industry goes back to 2018 when two people resident in Iran accused of malicious cyber activities. Since then there has been no back. Recently, the bomb announcement that the US Ministry of Finance has prohibited American citizens' use of tornado bargeld money.

While sanctions reduced the activities of Tornado Cash, a recently published report by Chainalysis shows that it is not easy to "pull the plug".

Effect of the OFAC sanction on Tornado Cash

The blockchain analytics company Chainalysis published a new report in which the increased efforts of OFAC to combat crypto activities and its effects on Ethereum-based Coin Mixer, Tornado Cash.

on-chain data before sanctions showed that 34 % of all of Tornado cash gave to illegal sources came from illegal sources, while illegal activities were only concentrated on crypto hacks and fraud. For example, the Harmony Bridge Exploit last summer made more than 65 % of the mixer stolen money inflows in a period of 60 days before OFAC initiated sanctions.

This pattern from isolated, unique events and most illegal funds occurred in short tips. This is in contrast to similar activities of services such as Darknet markets that see a more constant river that creates a steady money.

post sanctions Coin The activity of the mixer has decreased significantly, but did not completely stop. This is due to the fact that Tornado Cash runs on intelligent contracts that cannot be taken offline like a centralized service. Chainalysis therefore came to the conclusion that OFAC or any other place could do nothing but to impose legal consequences of sanction violations, prevent individuals from using it.

, however, Tornado Cash was difficult to access after his website, which acted as a frontend for easy access to the mixing service, was removed. His inflows decreased by 68 % in the 30 days after his name. The report said

"" These incentives seem to have been strong, since the inflows in the 30 days after their naming have decreased by 68 %. This is particularly important here, since Tornado Cash is a blender and mixer is less effective for money laundering, the fewer funds you get overall. "

data protection advocates condemn tyranny

The sanction against Tornado Cash provoked a massive counter reaction. Non-profit blockchain interest representation Coin Center filed a lawsuit against the US Ministry of Finance in September and explained that the step has effectively criminalized the citizens of wanting to protect their privacy while using their own crypto-assets.

The prominent crypto exchange Coinbase also sued OFAC and accused the financial secret service of exceeding its powers.

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