Tornado Cash Sees Drop In Activity After U.S. Treasury Sanctions – What Now For TORN?
October 04 2022 - 8:45AM
NEWSBTC
The value of Tornado Cash is decreasing, not due to market factors
but because of recent controversies. The Office of Foreign
Assets Control recently added Tornado Cash to its list of
Special Designated Nationals. That means no one from the United
States may use the token. By taking this action, OFAC has
effectively banned Tornado Cash from participating in one of the
most important cryptocurrency markets. Many owners of Tornado
Cash’s native coin, TORN, also liquidated their investments in
response to the news. From its high closing of $30.25 on August
7th, TORN has fallen 87.03% to its current price. Related Reading:
Chainlink Crosses $6.18 Trillion In Transaction Value – Will This
Boost LINK Price? Tornado Cash Linked To Nefarious Activities Even
before the OFAC decided to add Tornado Cash to its special list,
TORN had been linked to multiple high-value crypto crimes. The
Lazarus Group, perpetrators of one of the largest crypto thefts in
history, employed TORN as part of their plot to conceal the true
origin of their stolen funds. The breach was carried out on the
Ronin Network, an Ethereum-based sidechain. In March of 2022, the
network hosted game Axie Infinity, which saw its highest player
count. Because of this, malicious actors like the Lazarus Group
were able to zero in on the system and the game with relative ease.
The theft led to the loss of 173,600 Ether and 25.5 million USDC.
The total dollar amount is $625,000,000. Later this year, the OFAC
will penalize the project and all connected wallets due to this
attack. Chart: TradingView.com Sanctions Deal A Heavy Blow On TORN
It is hardly surprising that criminal actors have used Tornado Cash
to launder stolen cryptocurrency. In the DeFi domain, mixers are
special programs that ostensibly enhance privacy by blending
transactions, so obscuring the money’s path from point A to point
B. In 2019, more than $7 billion worth of cryptocurrency was
laundered using Tornado Cash, according to a U.S. Treasury
Department report. As of this writing, the sanctions have a
significant impact on TORN. According to a source, there are
currently only 100 unique users on the network. After the
announcement of the sanctions, transactions in excess of $100,000
became practically nonexistent. TORN is trading just above the
38.20% Fib retracement level at the moment. This level will support
the price of the crypto due to the close correlation between
the buying and selling quantities of bulls and bears. As the
sanction dismantles the project, it is only a matter of time till
it hits zero. Related Reading: Cardano: These Factors Have A
Negative Impact On ADA Price Crypto total market cap at $918
trillion on the daily chart | Source: TradingView.com Featured
image from The Daily Hodl, Chart: TradingView.com
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