The destruction caused by the Treasury Department’s decision to ban Tornado Cash continues.
Multiple Twitter users have reported that the project’s Discord server has vanished after the Treasury’s suspension, and its website and governance forum are now inaccessible. Friday, Crypto Briefing was unable to access its website, governance forum, and Discord server, although its Telegram channel remained operational.
Tornado Cash is a tool for mixing and obscuring Ethereum transactions. The Treasury revealed on Monday that it had added the protocol to its list of sanctions because it had previously allowed thieves to launder digital assets. All U.S. citizens are prohibited from interacting with the protocol, which includes the Tornado Cash website and smart contracts.
The action by the Treasury generated fury in the cryptocurrency sector and has already had significant effects on the business. This week, other centralised companies, such as Discord, have cooperated with the Treasury’s prohibition. Circle, GitHub, Alchemy, and Infura are among them. Rune Christensen, the creator of MakerDAO, suggested that the protocol may dispose of its USDC collateral in response to Circle’s activities.
The Tornado Cash problem took a new turn earlier today when the Dutch Fiscal Information and Investigation Service reported the arrest of a 29-year-old man accused of being engaged in the protocol’s development this week. In response, many crypto enthusiasts have questioned why others who built tools used by criminals, such as central bankers, the creator of the World Wide Web, Sir Tim Berners-Lee, and makers of utensils, have not been prosecuted. They contend that the agency’s decision to hold the suspect is an act of oppression that violates the right to free expression.
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