After the United States government sanctioned the USD Coin (USDC) and Ethereum addresses associated with the cryptocurrency mixer Tornado Cash, the managers of the project’s community fund multi-signature wallet have decided to delegate their functions.
In 2021, the Tornado Cash community created a fund to incentivize the main contributors to the project. The fund was held in a community-managed multi-signature wallet with five members chosen by their peers validating the transactions and selected for their contributions to the project.
However, since interacting with Tornado Cash now carries more risks (including penalties for US citizens ranging from fines of up to $10 million to prison terms of up to 30 years) the community members in charge of the fund have left their positions and have ceded control to the decentralized autonomous organization (DAO) of the project.
On August 12, the administrators of the fund began to give up their capacities. Y On August 14, the five members of the multi-signature wallet completely removed their access, leaving only the governance wallet as the sole manager of the fund.
tornado cash multisig disbanded, the last remaining owner is the daohttps://t.co/S6cBnhflSz
— banteg (@bantg) August 14, 2022
Community members were surprised to see this and weighed in on the issue of sanctioning the use of software by the US Department of the Treasury. a Twitter user he claimed that, unless something changes, everything and everyone linked to the project could be considered collaborators. On the other hand, another member of the community opined that this could be a way to revamp the DAO entirely and argued that it is time for token holders to take responsibility.
Meanwhile, as concerns around Tornado Cash mount, an anonymous user decided to take the opportunity to send Ether (ETH) derived from Tornado Cash to celebrities like Jimmy Fallon, Shaquille O’Neal, Dave Chappelle, and others. It is likely that the sender is trying to play a prank that will result in control measures by drawing the attention of regulators to the recipients. However, simply receiving cryptocurrency may not give rise to legal repercussions, as a valid case requires “intentional” involvement with Tornado Cash.
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