The flow of funds to the Tornado Cash protocol decreased by 78.5% after it was sanctioned by the US authorities on Monday, August 8, informs The Block citing their research. Over the past three days, only $6 million was entered into the protocol, which is approximately 4.5 times less than in the previous period last week. RBC Crypto.
At the same time, users began withdrawing funds: since the announcement of sanctions, $62 million has been withdrawn from the protocol, which reduced the total amount of cryptocurrencies stored in Tornado Cash by 15%. In the first three hours alone, $14.7 million was withdrawn, the article says.
The blockchain protocol running on the Ethereum network – Tornado Cash allows you to increase the confidentiality of transactions by hiding the connection between the source and recipient of tokens. The US Department of the Treasury has placed the Tornado Cash service and associated crypto wallet addresses on the sanctions list, justifying its decision by the fact that the platform was used to launder illegal crypto assets.
The exchange rate of the platform’s native token TORN fell by 44% over three days, from $30.5 to $17, according to Coingecko.
On August 8, Circle, the issuer of the USDC stablecoin, blocked the addresses associated with the Tornado Cash cryptomixer. This measure affected approximately 40 addresses that fell under US government sanctions.
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