Multisig wallet of Tornado Cash fund passed under the control of DAO

All signatories of the Tornado Cash Community Fund multisig wallet have renounced the right to manage it after the introduction mixer sanctions.

In 2021, the Tornado Cash community supported the creation of a fund in TORN tokens to support projects to improve the protocol. Users voted to determine whose contribution was worthy of compensation.

Transactions were controlled by five elected members of the community, with the necessary consensus of four of them.

On August 12, the signatories began to relinquish management of the funds. On August 14, all participants of the multisig wallet closed their access, and DAO remained its sole owner.

After Tornado Cash was placed on the OFAC sanctions list on August 8 for laundering $7 billion, the TORN token fell from over $30 to $13.2 at the time of writing.

Hourly chart of TORN/USDT of the Binance exchange. Data: Trading View.

The mixing service also faced an outflow of user funds. By August 11 alone, clients withdrew assets worth $62 million, or 15% of their account balances.

As part of the restrictions, Circle has blacklisted the USDC addresses of 38 Tornado Cash wallets. One of the stablecoin operators blocked the movement of at least 75,000 USDC.

Some platforms, including DEX dYdX, have started blocking accounts associated with the mixer.

Recall that members of the Tornado DAO called on the community to hire a team of lawyers to deal with the imposed sanctions.

On August 12, law enforcement officers in the Netherlands arrested a developer allegedly linked to Tornado Cash.

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