Popular Ethereum-based coin mixing service Tornado Cash has been sanctioned by the U.S. Department of Treasury.
In an official announcement US Treasury Department announce the sanction of popular privacy best cryptocurrency tornado cash.
The move shows that American authorities are determined to after different parts of the crypto supply chain that are used for nefarious activities.
In May, the U.S. government sanctioned Blender, another coin mixing service, for allegedly helping North Korea launder some of the funds stolen from Axie Infinity. Coin mixing services are used for obscuring the origin of particular transactions.
Also Read: Meta’s Instagram NFT integration expand over 100 countries
In March, one of the founders of Tornado Cash opined that it was “technically impossible” to enforce sanctions against the controversial coin mixer.
Such privacy blockchain mixer services have become a challenge for governments.
Most of the crypto hacks used hackers to stash the stolen cryptocurrencies using these mixer services, which caused a lot of trouble for the government.
What Is Tornado Cash (TORN)?
Tornado Cash is a decentralized, non-custodial privacy solution built on Ethereum. It improves transaction privacy by breaking the on-chain link between recipient and destination addresses. Tornado Cash uses a smart contract that accepts ETH and ERC-20 deposits. These deposits can be withdrawn by any on-chain address. Whenever an asset is withdrawn by the new address, there is no way to link the withdrawal to the deposit, ensuring asset privacy.