Tornado Cash, a service that attempts to make Ethereum (ETH) transactions more anonymous, has released the details of their approach of blacklisting sanctioned addresses.
Here’s “how”
Tornado Cash will no longer enable crypto addresses sanctioned by the US Office of Foreign Assets Control to use its services, according to a statement released on Twitter by the Tornado Cash team (OFAC).
Further restrictions will be implemented in collaboration with Chainanalysis, a world-leading crypto compliance group. Tordano Cash has incorporated an oracle produced by Chainanalysis.
Crypto logistics speculated on the new filtering mechanism’s technological details. In fact, sanctioned addresses will be unable to communicate with the user interface of the protocol (frontend).
The limitation on OFAC-sanctioned Ethereum (ETH) addresses was introduced after it was revealed that the famed North Korean hacking team Lazarus had conducted a $625 million attack on the Ronin sidechain.
The hacking of Lazarus Ronin could have been carried out by a North Korean group.
Tornado Cash had previously banned restrictive policies from being enforced by its mixing services. On the other hand, some Ethereum (ETH) mining pools restrict transactions from accepted addresses from being included in future blocks.
Tornado Wants to ensure perfect privacy
Tornado Cash, a well-known Ethereum mixer that aids in the concealment of cryptocurrency transactions, has declared that it will block crypto addresses sanctioned by the US Treasury Department’s Office of Foreign Assets Control (OFAC).
Tornado Cash protects transaction security by breaking the chain’s connection between the source and destination addresses.
It accepts ETH deposits via a smart contract, which may afterward be withdrawn from a separate address.
To maintain privacy, a relayer can be used to withdraw to an address with no ETH balance. When ETH is withdrawn from a new address, there is no way to link the withdrawal to the deposit, ensuring perfect privacy.
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Source: https://www.thecoinrepublic.com/2022/04/18/know-why-and-how-tornado-cash-is-blacklisting-crypto-addresses/