After the US Treasury blacklisted the Tornado Cash mixer, decentralized exchange dYdX suspended services to users using the service.
According to the blog post, dYdX is partnering with a “legal provider” that labels certain accounts that have received funds from the Tornado Cash app.
“Many accounts have been suspended because a certain portion of the assets in the wallet was once linked to Tornado Cash, recently added to the US sanctions list,” dYdX said.
At the same time, the exchange mistakenly blocked several user accounts. dYdX acknowledged that these users did not interact directly with Tornado Cash and may not have been aware of the origin of the funds transferred to them.
“We have made adjustments to our compliance policy to unlock certain accounts, and will continue to make efforts to limit the ban and monitor this issue going forward,” the statement said.
As a reminder, mixing service Tornado Cash has come under the spotlight after being blacklisted by the US Treasury Department. Due to compliance requirements, other exchanges may also refuse to do business with Tornado Cash users.
However, exchanges are not the only crypto companies taking action in response to sanctions against Tornado Cash. Recently, infrastructure provider Ethereum Alchemy blocked Tornado Cash users from accessing their nodes. GitHub went one step further and removed the account of one of the mixer’s founders.
Source: Bits
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