News11 August 2022

dYdX blocks users associated with Tornado Cash

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The platform has blocked users on whose accounts there was interaction with Tornado Cash

This morning, the platform confirmed the bans of the accounts of users whose activity was related to Tornado Cash. All because the U.S. accused the mixer of laundering 7 billion dollars and a "stash" of several hundred million dollars.

Along with the reasonably banned accounts, a couple of non-compliant ones were also "banned" by the platform. As they later claimed, they were unbanned.

In their blog, dYdX also said they are already working with a service that will help them identify accounts working with Tornado Cash. The service wasn't specified. 

"Many accounts have been blocked because a certain amount of funds in the wallet (in many cases even insignificant amounts) were linked at some point to Tornado Cash, which was recently added to the US sanctions list," the blog post.

However, exchanges are not the only type of cryptocurrency company taking action in response to the Tornado sanctions. The cryptocurrency sector is seeing wider ramifications of the event. Some services, including Alchemy, have blocked users of Tornado Cash from accessing their nodes.

Github also removed all Tornado Cash repositories from its platform.

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