- The measure took effect on August 8, the US Treasury noted.
- The publication stated that no blocking addresses were requested by OFAC.
Tether said she is seeking guidance from authorities before deciding whether or not to freeze Tornado cash addresses. The recent US government sanction on virtual currency mixer Tornado Cash has sounded alarm bells in the cryptocurrency sector.
The US Treasury Department Tornado Cash, an Ethereum-based coin mixer, is blacklisted on its list of Specially Designated Citizens and Blocked Persons (SDN). The penalty now prevents US investors from using the coin-mixing service chain.
The measure took effect on August 8, the US Treasury noted. Tornado Cash, a coin mixer based on Ethereum, has seen a rise in popularity and is being used by many companies to hide the origin of their transactions. In a recent blog post, Rope He admitted that the company could act irresponsibly in closing secondary market addresses.
Severe criticism of the punishment
Tether said in a blog post that there are situations where law enforcement has explicit orders not to block certain suspicious addresses because doing so may alert suspects. For this reason, no more leads or suspects will be arrested.
The blog post adds that US authorities have not requested that any addresses blocked by OFAC be frozen. Tether noted that even if the company is not based in the United States, it nevertheless views OFAC sanctions as a global compliance mechanism. It also warned that if the addresses are frozen without any orders, the investigation could be hampered by several authorities.
Five days after the US issued sanctions on Tornado Cash, the Dutch Information and Investigation Service (FIOD) said it had detained the Tornado Cash programmer as a “suspect”. Crypto enthusiasts and privacy activists have decried the arrest as a declaration of war on developers.
Recommended for you:
Tether reports a 58% drop in commercial paper holdings
#Tether #longer #freeze #Tornado #cash #addresses