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Tornado Cash has been added to Office of Foreign Asset Control's (OFAC) list of sanctioned internet services, shutting down a key privacy tool for Ethereum users, one frequently used by cybercriminals.
Why it matters: Tornado Cash is a non-custodial mixer that runs on the Ethereum blockchain. It allows an Ethereum address to receive funds without revealing who gave it to them (like cash does).
There are currently $482 million in crypto assets sitting in Tornado Cash pools, according to DefiLlama.
State of play: Americans who try to use Tornado Cash will be in violation of the law.
It's on a public blockchain, so it can't be shut off directly. Any American who tries to use it, though, might get a visit from authorities. The OFAC site lists a series of Ethereum addresses associated with each version of Tornado Cash.
What they're saying: “Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to...