On Tuesday, a day after the US Department of the Treasury sanctioned cryptocurrency mixer Tornado Cash for its alleged role in cryptocurrency money laundering operations, trading ranges of 0.1 Ether (ETH) from the contract began to materialize. smart to prominent figures in the crypto space such as Coinbase CEO Brian Armstrong and American TV host Jimmy Fallon. Transactions are not traceable by design, so the transaction could involve one person or multiple persons or entities.
Notable individuals/companies who just received funds from a government-sanctioned entity:
– Jimmy Fallon
– Steve Aoki
– Ukraine Crypto Donation
– Dave Chappelle
Field day for investigators. https://t.co/9HDJmppzT2
— FatMan (@FatManTerra) August 9, 2022
Due to international sanctions, it is illegal for any US person or entity to interact with Tornado Cash smart contract addresses, blockchain, or businesses. Penalties for willful noncompliance can range from $50,000 to $10,000,000 in fines and 10 to 30 years in prison.
Transaction consistency indicates that the sender(s) may be initiating a prank to draw law enforcement attention to the recipient(s). However, Treasury sanctions require “intentional” involvement in blacklisted smart contract addresses as a precondition to potential criminal prosecution. Therefore, receiving Tornado Cash tokens for free, without any prior knowledge or commitment, is unlikely to constitute a sanctions violation.
On the same day, Web 3.0 development platforms Alchemy and Infura.io joined stablecoin issuer Circle and programming repository Github in blacklisting sanctioned Tornado Cash addresses and banning access to their front-end application. .
Months earlier, Tornado Cash attempted to address ongoing concerns that its platform was being used by malicious hackers to launder stolen cryptocurrency funds by disabling access to the app from illicit wallets. However, its co-founder, Roman Semenov, said at the time that the instrument only blocks access to the interface of the decentralized application, or DApp, and not to the underlying smart contract.
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