Alex Coin 
The incorporation of tools for Chainalisys allows you to block sanctioned addresses. However, blocking only applies to the front-end, not the underlying smart contract.
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The popular cryptocurrency mixer from Ethereum a decentralized open-source blockchain with smart contracts functionality. , Tornado Cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. has been leading efforts to block sanctioned addresses.
In a Twitter post on Friday, the team of Tornado Cash reported that it is using a tool developed by the compliance firm Chainalysis to block the addresses of cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchanges sanctioned by the Office of Foreign Assets Control (OFAC), an agency of the U.S. Treasury. . The media CoinDesk yThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. they said.
Tornado Cash uses @chainalysis oracle contract in traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain. to block OFAC sanctioned addresses from accessing the dapp.
Maintaining financial privacy is essential to preserving our freedom, however, it should not come at the cost of non-compliance. https://t.co/tzZe7bVjZt– ????️ Tornado.cash ????️ (@TornadoCash) April 15, 2022
The protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. noted that it uses the oracle of Chainalysis for the enforcement of sanctions, un contrato inteligente gratuito que busca monederos de criptomonedas sancionados por varios gobiernos. De acuerdo con CoinDesk The sanctions detection tool was launched in March, in the context of the Russian invasion of Ukraine.
The incorporation by Tornado Cash assumes that las direcciones de billeteras de monedas digitales listadas por la OFAC ahora no podrán usar el mezclador. “ Maintaining financial privacy is essential to preserving our freedom, however, it should not come at the cost of non-compliance. “, he wrote Tornado Cash in a tweet el viernes.
However, the blockade only applies to the interface, i.e. the decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. user-oriented application (dApp) not the underlying smart contract, he explained. one of the founders of the protocol in Twitter .
The compliance measure is not new
Built on Ethereum , Tornado is a decentralized protocol that enhances the privacy of transactions by breaking in the world of cryptocurrencies, breaking the forward compatibility of cryptoassets is seen in hard forks of a cryptocurrency. the chain link between a source and destination address. Because of its ability to obfuscate cryptocurrency movements, it is often used by hackers to mask their addresses when laundering illicitly obtained funds.
The project, which has come under fire as crypto-regulations become stricter, claims to defend people’s financial freedom. For its part, founder Roman Semenov has argued that the team has little control over what its users do with the protocol, as it is designed to be autonomous and outside the control of the developers.
In a recent interview for CoinDesk Semenov said it was “technically impossible” impose sanctions on decentralized protocols such as Tornado Cash . “ There’s not much we can do “, Aggregate.
In an article this Friday, CoinDesk indicated that the mixer’s measure to restrict addresses from the accessfront-end is not new. According to the media, a former agent of the DEA, the U.S. agency that fights drug smuggling, had already revealed in January that Tornado Cash complies with the list of cryptocurrency wallets sanctioned by OFAC.
According toThe Block, Tornado Cash created a contract to block addresses sanctioned more than a month ago, and, h So far, it has blocked a total of 24 addresses.
Will it drive away bad actors?
The news comes a day after the U.S. Treasury linked the group’s Norwegian hackers Lazarus with the $625 million attack on the network. Ronin , en Axie Infinity.
According to the informs In the past, the hackers had already laundered nearly $80 million through the mixer. Tornado Cash . Incorporation of the wallet a place where cryptocurrency users can store, send and receive digital assets. involved in the attack. Ronin to OFAC’s list of sanctioned entities on Thursday will now prevent perpetrators from continuing to use the protocol to transfer stolen funds.
However, some users have not been receptive to the protocol’s measures. At Twitter Several came out to criticize the move, suggesting that blocking sanctioned addresses did not mean that bad actors could not use the service. As reported byThe Blockthey argued that the hackers seguir usando Tornado if you send the coins to other addresses.
Other decentralized protocols such as Uniswap y 1inch have also moved to comply with the regulations. of the U.S. Uniswap has removed a large number of tokens that could represent securities or derivatives offerings, while 1inch has begun tracking down IP addresses in that country.
- FinCEN sanctions first Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. “mixer” for violating anti-money laundering laws
- UK’s National Crime Agency calls for regulation of cryptocurrency mixing technology
- SEC investigates developer of decentralized exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Uniswap
Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva
