Since the U.S. government officially approved Tornado currency on August 8. Tornado cash is a mixing token that makes Ethereum transactions anonymous.
Following the sentence, the Dutch Economic Information and Investigation agency punished a suspected Tornado cash creator, who was arrested on August 10 by Dutch Authorities in the Netherlands.
Several reports indicate that a few of Defi procedures are implementing measures to comply with U.S. sanctions and barring accounts that have connected with Tornado currency. On Saturday, Justin Sun, co-founder of Tron, announced on Twitter that Aave had disabled his account.
According to Justin Sun, his account was blocked immediately after an unknown address gave him 0.1 ether at random.
Jerry Brito, executive director of the non-profit cryptocurrency organisation Coin Center, predicted that this would occur. The Tornado Cash punishment violates the “constitutional right to anonymity” of American citizens.
“Presumably, this implies that everyone who connects with those addresses would be in technical breach,” Brito says Fortune, even if they got a few bucks without their knowledge from a Tornado Cash mixer.
According to reports, this anonymous user also gave 0.1 ETH to a number of well-known accounts and American celebrities, including Jimmy Fallon and Logan Paul. The act may be a protest against the punishment imposed by Tornado Cash and its effects.
It is now unlawful for any American person to communicate with Tornado Cash, yet it is technically difficult to prevent people from transferring money to random accounts using Tornado Cash.
The U.S. government has made it quite apparent that it will continue to watch mixers and take action if necessary; yet, there seem to be unexplored grey areas.