December 11, 2023

Tornado Cash faced an outflow of user funds

Tornado Cash faced an outflow of user funds

The assets of the mixing service Tornado Cash decreased by 15% after OFAC added to the sanctions list. Such dataleads The Block.

Users effectively stopped depositing and accelerated the return of previously deposited funds.

Since the announcement of restrictions, the volume of receipts has amounted to $6 million. This is 78.5% lower than the value for the same period of the previous week. 

During this time, users withdrew $62 million from the protocol, which is equivalent to 15% of the amount of balances on its addresses. In the first three hours, the outflow amounted to $14.7 million.

Let us remind you that on August 11 it became known about the blockingdecentralized derivatives exchange dYdX for Tornado Cash user accounts. ForkLog also announced the development of MakerDAO  plan in case the main smart contracts of the mixer fall under government sanctions.

Earlier, Vitalik Buterin used Tornado Cash to donate to Ukraine.

On August 9, Tornado Cash user sent0.1 ETH Ethereum to multiple addresses. Among the recipients are EthHub co-founder Anthony Sassano, Loomdart crypto trader, Coinbase CEO Brian Armstrong, TV host Jimmy Fallon, YouTuber Logan Paul, and Randy Zuckerberg. The community took this as a protest against the actions of the US authorities.

Experts assessed the consequences of sanctions against the Tornado Cash mixer

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