Tether upheld its decision not to freeze the Tornado Cash-related sanctioned wallet addresses as they have not received any requests from US law enforcement or regulators, the company said. in one declare last evening.
Until last night (August 24), an article by Washington Post reported Tether's statement about this, claiming that the organization was fighting the Treasury Department's sanctions. The publication also cites data from intelligence firm Dune Analytics that proves Tether has not blacklisted any sanctioned accounts.
Tether Chief Technology Officer Paolo Ardoino said:
“So far, OFAC has not requested an issuer stablecoins must freeze addresses sanctioned by OFAC. Furthermore, no US law enforcement or regulatory agency has made such a request even though we are in close contact with them on a daily basis.”
He said Tether “generally complies with requests from US authorities,” considering US Treasury Department sanctions “as part of its world compliance program.” The Tether representative added that it will “work closely” with US law enforcement and proceed to freeze wallets if it receives a legitimate request from the authorities.
Furthermore, Tether commented:
“Unilaterally freezing secondary market addresses could be a disruptive and highly reckless move. Even if Tether notices suspicious activity on such an address, freezing without formal guidance from law enforcement and government agencies could lead to legal investigations. other laws.”
Remarkable, Circle – stablecoin issuer USDC – blacklisted Tornado Cash wallet addresses within hours of being punished. “We believe that, if taken without guidance from the US authorities, the actions of USDC… is premature and may have jeopardized the work of regulators and other law enforcement agencies around the world,” commented Tether.
Tether further noted that Paxos, the organization behind stablecoin BUSD and USDP, and the algorithmic stablecoin DAI – with 36% reserved in USDC – will not freeze Tornado Cash addresses either.
While many platforms are quite confused about this, the industry as a whole cryptocurrency are seeking clarity they must make in order to comply with Treasury sanctions. Earlier this week, Representative Tom Emmer, R-Minn., sent a letter to Treasury Secretary Janet Yellen asking for answers on how the department is responding to these sanctions.
Tornado Cash is banned by the US
The US Treasury Department approved the Office of Foreign Assets Control (OFAC) to sanction mixers cryptocurrency Tornado Cash on 8/8. From there, any entity that still interacts with this protocol will be classified as illegal.
Tornado Cash is a transaction “mixer” platform that allows users to send ETH or tokens ERC-20 is supported in, then will mix numbers ETH this and send it back to the user, essentially erasing almost completely the transaction traces of the funds to increase privacy. This is an open source and completely decentralized project, but is blocked by law just because it is used for bad purposes.
After the ban, there was a long list of organizations/platforms blocking transactions related to Tornado Cash. Can be mentioned as USDC . issuer Circle, RPC providers Infura and Alchemy, floor dYdX, protocols DeFi Uniswap, Aave, Balancer, wallet Oasis.app,… Many traditional technology platforms such as website host, GitHub, Discord, community web host KNIFE The latest good project is mining pool ETH The world's largest has also put Tornado Cash and blacklisted.
More aggressively than Tether, Circle ordered an immediate freeze of 75,000 USDC in sanctioned wallet addresses, but the first effect appeared, sparking many debates about decentralization and anti-censorship. of cryptocurrencies.
And it is this blockade that has sparked the debate about new decentralization. Tensions increased further when Dutch authorities arrested a developer of Tornado Cash and his wife recently criticized her husband for being mistreated and the creation of source code. open does not deserve such criminalization.