A Tornado Ban
Market Meditations | August 9, 2022
The US Treasury Department has sanctioned Tornado Cash for allegedly helping launder more than $7 billion worth of virtual currency since its creation in 2019.
- On the August 8th, Tornado Cash was added to the Office of Foreign Asset Control’s (OFAC) list of Specially Designated Nationals and Blocked Persons (SDN List).
- The OFAC administers and enforces sanctions against high-profile individuals, including major international terrorists, drug trafficking kingpins, and the financial/political elite of certain countries deemed hostile to American interests.
- It is illegal for any US person to engage in trade, economic transactions, or “other dealings” with any person, company, or country on the SDN List, which now includes Tornado Cash.
- At least 75,000 USDC have been frozen due to blacklisting Tornado Cash wallets, according to Ethereum blockchain explorer data.
- This is not the first time Centre has blacklisted USDC wallet addresses due to law enforcement or regulatory action. In July 2020, the consortium froze about $100,000 in USDC based on ‘a law enforcement request’.