This article is nothing more than our thoughts about the current situation, we aren’t trying to call anyone to action by sharing it.
All the Ethereum addresses belonging to the Tornado Cash platform have been certified as SDN OFAC list members. 😨 That is a list of individuals, whose financial addresses are banned from participating in any financial operations. What might that lead to? 🤔
What is Tornado Cash?
Tornado Cash is one the biggest cryptocurrency tumblers - an app that makes tracking any transactions much more complicated. Considering the recent decentralisation anti-trend, people, who are worried about their privacy, made the rates of cryptocurrency tumblers rise dramatically. Such apps would usually split the user’s transaction into small pieces and mix the same assets to process new transactions and sort them by senders and receivers once again. That makes tracking any transaction nearly impossible because of how many small bits there are after that split.
What differs the situation from others?
To understand the difference between Tornado Cash being registered as a
SDN OFAC and all the other individuals in this list we shall firstly get a clear understanding of…
What SDN OFAC actually is?
The list consists of individuals, who have been suspected of violating the law and executing any financial operations, that are not approved by the US government. It is an instrument that restricts the use of United States financial services for all the criminals. 👮♀️
Why is banning Tornado Cash a law violation itself?
The list can only have individuals as its members, but Tornado Cash isn’t even a human. The US government has basically banned a smart contract, that is fully decentralised and anonymous. 🎭 Even if the creators and current owners of Tornado Cash get into a car accident and pass away, that application will continue working properly. ✅
The sanctions weren’t applied to some particular person, who violated the law - they were applied to every citizen of the US, wanting to use a specific instrument that is not controlled by any individual. Furthermore, the ban can cause citizens to be accused of using that instrument by receiving transactions. Cases or celebrities, being substituted that way are already here. 😡
What can be the consequences?
We all know that blockchain has lots of haters and just people, who lose profit because of the technology development. Sanctions might continue with other dApps and the only people who can stop that is the crypto community. It is all up to you.
We hope for justice. 🙏
Stay tuned 📻