Tornado Cash Ethereum Token Down Over 50% After Sanctions

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In the week following the sanctioning of the Tornado Cash website by the US Treasury Department’s Office of Foreign Assets Control (OFAC), the price of the token that underpins the system fell 56%, starting the week at a high. of $31.56 and ending the week at a low of $13.09, according to CoinMarketCap.

Tornado Cash (TORN) is an ERC20 token and the native token of the Tornado Cash DAO, used to manage governance and voting. It is currently the 691st largest cryptocurrency, with a market capitalization of $15.5 million.

After the US Treasury issued its sanctions and Github took the Tornado Cash website offline by removing its repository from the site, the price of the token began to drop.

Launched in 2019, Tornado Cash is a blockchain protocol for sending and receiving anonymous transactions by mixing Ethereum tokens with a pool of other tokens, anonymizing the user.

In its sanction of Tornado Cash, the US Treasury cited its use by the North Korean hacker group Lazarus Group and the laundering of more than $103.8 million from the Horizon Harmony Bridge and Nomad Token Bridge hacks earlier. this summer.

Following a debate by the Tornado Cash community, the band’s Discord server went missing and strangers also took the forum offline on the Tornado Cash community website. At the same time, a member of the developer group behind Tornado Cash was arrested by law enforcement in the Netherlands.

The US Treasury’s Fiscal Information and Investigation Service (FIOD) said its criminal investigation into Tornado Cash began in June 2022.

This crypto winter seems particularly harsh for the Tornado Cash community. Coupled with the current bear market, the sanctions, shutdowns and arrests appear to have dealt a major blow to the project as holders continue to flee.

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