For the first time in its history, Tornado Cash, the most popular crypto mixing service, begins to censor sanctioned addresses
- Tornado Cash now censors sanctioned addresses, here’s how
- North Korean Lazarus may be the group behind the Ronin hack
Tornado Cash, a service designed to advance the anonymity of Ethereum (ETH) transactions, has shared details of its solution to begin blocking sanctioned addresses from using its instruments.
Tornado Cash now censors sanctioned addresses, here’s how
According to the statement shared by the Tornado Cash team on Twitter, the platform now restricts the ability to use its services for crypto addresses sanctioned by the United States Office of Foreign Assets Control (OFAC).
Uses of Tornado Cash @chainalysis oracle contract to prevent OFAC-sanctioned addresses from accessing the dapp.
Maintaining financial privacy is essential to preserving our freedom, but it shouldn’t come at the cost of non-compliance.https://t.co/tzZe7bVjZt
— 🌪️ Tornado.cash 🌪️ (@TornadoCash) April 15, 2022
New restrictions will be imposed in conjunction with Chainanalysis, a global leader in crypto compliance. Tordano Cash has integrated an oracle developed by Chainanalysis.
Crypto enthusiasts wondered how the new censorship mechanism would technically work. In fact, sanctioned addresses will not be able to interact with the protocol’s user interface (frontend), while the architecture of smart contracts will not be affected.
Asked about the motivation for this choice, Mr. Roman Semenov, one of the founders of Tornado Cash, suggests that a more sophisticated mechanism may soon be integrated:
The RPC call was just faster to implement. Chainalysis has a Sanctions Screening API, but I’ve submitted my access request and haven’t received a response yet.
North Korean Lazarus may be the group behind the Ronin hack
Previously, Tornado Cash refrained from implementing penalty policies on its mixing services. At the same time, some Ethereum (ETH) mining pools prevent transactions from sanctioned addresses from being included in new blocks.
Restrictions on OFAC-sanctioned Ethereum (ETH) addresses have been imposed after news broke that a $625 million attack on the Ronin sidechain was staged by the infamous North Korean hacker group Lazarus.
As covered by U.Today previously, on the day of the aforementioned Tornado Cash ruling, over $90 million in equivalent was sent to its platform by Ronin hackers.