Circle, the creator of the USD Coin (USDC) stablecoin, has frozen more than 75,000 USDC in funds connected to the 44 Tornado Cash addresses sanctioned by the United States Treasury Departments Specially Designated Nationals and Blocked Persons (SDN) list.
Tornado Cash is a dApp that hides the history of previous crypto transactions on the Ethereum blockchain. Presently, Tornado Cashs smart contract addresses hold an estimated $437 million in assets, including wrapped Bitcoin (WBTC), Ethereum and stablecoins. Due to this, issuers are expected to try and prevent such assets from being traded or redeemed.
The digital currency mixers Ethereum and USDC smart contract addresses on the SDN list are hence not allowed for U.S individuals, businesses, and any other entity. Moreover, penalties for willful non-compliance could range from anywhere between $50,000 to $10,000,000 in fines along with 10 to 30 years in prison.
To make matters worse, Tornado Cash's new sanctions could even complicate simple interactions like Gitcoin donations, project work, and withdrawing or depositing from smart contracts as they could all be interpreted as violations from now on.
More Than 75,000 USDC In Crypto Funds Frozen
Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.
October 17,2024
An Overwhelming Majority Of Asian Private Wealth Is Investing In Crypto
October 17,2024
WLFI Token Raises $5 Million As Technical Issues Persist
October 16,2024
DeLorean Motors May Copy Tesla And Adopt SHIB As Payment Option
October 16,2024
Everything You Need To Know About The New Ripple Stablecoin
October 15,2024
Hyperliquid Announces New HYPE Tokens Ahead Of Mainnet Launch
October 15,2024
New Ethereum Proposal Could Drastically Reduce Validator Threshold
October 14,2024
US DoJ Aims To Boost Market Trust By Targeting Meme Coin Scammers
October 14,2024
Chinese Researchers Breach Cryptographic Algorithms Via Quantum Computing
October 14,2024
Web3 Fundraising Deals - 8th To 14th October 2024
October 13,2024
Bitcoin Touches $63K As Meme Coins Continue To Soar
October 12,2024
Former Crypto CEO On The Run As Authorities Issue Arrest Warrant
October 11,2024