Blockchain Association and DeFi Education Fund called the Tornado cash ban decision unprecedented and unlawful.
Tornado Cash is a popular Ethereum mixture platform. With the help of this platform, a crypto user can easily mix his crypto assets transaction to achieve privacy in the crypto transactions. In Aug 2022, the U.S. The Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned this platform because of the failure of its team to prohibit $7 billion worth of cryptocurrency laundering over three years.
On 2 June 2023, The Blockchain Association and DeFi Education Fund submitted an amicus brief to share opinions against the Tornado cash ban decision.
These two entities argue that regulatory bodies are failing under this platform that how it works.
Further, the amicus brief highlighted the importance of this crypto-mixing tool, and how it helps people to maintain their financial privacy.
The brief also noted that Tornado Cash can be used for illegal activities but there are several better use cases and also alleged sanctions exceed OFAC’s statutory authority and result from “arbitrary-and-capricious decision-making.
However, the use of this platform in the US is a perishable offence but still, people can access this platform via Virtual Private Network (VPN) services.
Tornado Cash governance attack
In May of this year, a hacker tricked the governance systems of the Tornado Cash platform & secured nearly 483,000 Tornado Cash tokens (Torn).
On the next day, the hacker again submitted a proposal to hand over the governance token power to the actual Torn token holders back.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.