- Major crypto firms took action against Tornado Cash DAO.
- As Tornado cash DAO went offline after discussing ways to challenge sanctions.
The major crypto firms Github, Circle, dYdX, Alchemy, and Infura took action against Tornado Cash DAO following U.S. sanctions. Tornado cash turned offline after discussing finding ways to face the sanction by the United States Treasury Department’s Foreign Asset Control.
Tornado Cash DAO’s Violation
Tornado Cash reportedly followed a discussion, at which the company member voted without exception. The discussion is about adding its governance layer as signatory to the treasury’s multisig wallet. The wallet reportedly manages around $21.6 million.
At present, the reason behind decentralised autonomous organisation (DAO) offline is not clear. But assumed by multiple actions followed by different organisations or private institutions. It further assumed that it is in consequence of U.S. sanctions, which were announced against the controversial mixer on Monday.
The peer-to-peer technology firm, Circle, freezed more than 75,000 USDC on addresses which were listed by Treasury officials. While dYdX stated it blocked some users accounts that were linked with Tornado Cash. Alchemy and Infura.io stopped remote procedure call requests to the crypto mixer.
Authority is also responsible for policing financial crimes in the Netherlands. And it announced this Friday about the arrest of a developer who was allegedly involved in Tornado Cash’s money laundering. On this Monday, co-founder of Tornado Cash, Roman Semenov, claimed that GitHub suspended his account and Discord users. GitHub stated that the channel of the mixer went down this Friday.
Here's the list of Tornado Cash resources that were banned
– Tornado Cash @GitHub organization
– personal @GitHub accounts of TC contributors
– all $USDC on Tornado Cash contracts @circlepay
– @infura_io RPC
– @AlchemyPlatform RPC
– https://t.co/SHvgEjTOMV domain @eth_limo—
A joint statement “downloading a software patch from a sanctioned entity” came out, which is from the Federal Financial Institutions Examination Council and Office of Foreign asset Control. It further noted that penalties for failure associated with sanctions may include sturdy fines and prison.
Source: https://www.thecoinrepublic.com/2022/08/13/tornado-cash-dao-went-down-without-any-information/