In this regard, the OFAC published new details in its FAQ section, where it indicates that U.S. residents affected by the measures against Tornado Cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. will be able to recover funds blocked there, provided that they request the respective license.
- OFAC clarifies doubts about what happened with Tornado Cash
- Indicates that those affected will be able to recover their funds if they apply for a license
- In order to do so, they will have to justify why they made use of Tornado Cas h
- OFAC invites residents and businesses to comply with imposed sanctions
The events that occurred with Tornado Cash generated a lot of controversy inside and outside the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency ecosystem, but also left in its wake many doubts about the course to follow, especially for all those who were affected after the measures taken by the Treasury Department against the service for the transaction mix.
However, the Office of Foreign Assets Control (OFAC) The body attached to the Treasury Department, published in its “ frequent questions ” (FAQ) some information of interest for all the people and entities interested in what happened with Tornado Cash, where it offers some guidelines to follow as appropriate.
Americans will be able to recover funds blocked in Tornado Cash
One of the most frequently asked questions has to do with the funds blocked in the Tornado Cash, to which theOFACclarified that all those interested in recovering their assets trapped on the site can apply for a license to get them back.
In this regard, the document reads:
“U.S. persons should be prepared to provide, at a minimum, all relevant information with respect to these Tornado Cash transactions, including wallet a place where cryptocurrency users can store, send and receive digital assets. addresses for the sender and beneficiary, transaction hashes, the date and time of the transaction(s), as well as the amount(s) of virtual currency. OFAC would have a favorable licensing policy for such applications, provided the transaction does not involve other sanctionable conduct.”
The clarification comes after the lawsuit filed against the Treasury Department by a group of affected people following the sanctions against Tornado Cash, which were supported by the US-based international exchange, Coinbase. The individuals alleged that the government agency did not have the legal right to issue the sanctions applied given the nature of the transaction privacy service, as it is fairly 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. and open source, rather than listed as an entity, person or organization.
While there is no response to such allegations, at least theOFACand the Treasury Department They point out that those affected will be able to recover their funds as long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. as they comply with the above. They also allay some concerns for those who have received funds associated with Tornado Cash, clarifying that it is not necessary to notify the agency in the case of small, unsolicited amounts.
Residents must refrain from operating sanctioned services
Another point on which OFAC made special emphasis is the prohibitory nature of the measures taken against Tornado Cash, so residents and companies operating in the U.S. should refrain from making use of such services.
In this regard, an OFAC spokesman reiterated the above and called on the crypto industry on behalf of the entity, so that it has an attitude more attached to good practices:
“Americans must comply with these sanctions. More broadly, we call on the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. industry to do its part to prevent illicit activity, whether as a nation-state or otherwise, as that is what ‘responsible innovation’ requires… This would include ensuring adequate cybersecurity measures, implementing know-your-customer measures, and complying with sanctions and anti-money laundering obligations. Treasury looks forward to continuing dialogue with the virtual currency currency is a medium of exchange that defines value. industry on these issues.”
Let’s keep in mind that theOFACblacklisted the addresses associated with Tornado Cash after determining that the North Korean hacker organization, Lazarus Group, made use of the service to erase traces of funds associated with illicit acts. The regulator’s report stated that at least 20% of the funds that passed through it were linked to crimes and financial malpractice.
The actions taken by OFAC were only a small part of the uproar generated, as this was followed by actions driven by entities both inside and outside of the crypto space against Tornado Cash and his team. Among these is the blocking of funds in USDC imposed by Circle, as well as the arrest of its main developer on European territory.
- Backed by Coinbase, crypto-users sue US Treasury over Tornado Cash sanctions
- Tether team says it will not block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. addresses associated with Tornado Cash unless demanded by authorities
- Tornado Cash developer to remain in Dutch jail for another 90 days, judge rules
Article by Angel Di Matteo / DiarioBitcoin
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