New study by the New York Federal Reserve finds that US sanctions against Tornado Cash cryptocurrency mixing service were only partially effective but eventually resulted in cooperation. “mixed.”
In August 2022 the Office of Foreign Assets Control of the US Department of Treasury (OFAC), a division of the US Department of Treasury, blocked Tornado Cash. This was the first time that the US government had sanctioned an non-custodial intelligent contract.
The NY Fed discovered that Tornado Cash transactions immediately fell in volume and value after the announcement of the sanctions. Researchers also measured user diversity by counting the unique addresses. “dropped significantly” After Tornado Cash has been blocked, the following weeks were a time of confusion.
Still, even as usage lowered, anonymity pools — which determine how anonymous transactions can become when using the mixer — were able to remain large, researchers said.
“Despite gross drops in flows to and from Tornado Cash addresses, we find an increase in the total value deposited in Tornado Cash addresses, relative to pre-sanction levels, for all but the largest denominated pool,” Notes on the NY Fed Report, released Wednesday.
“Tornado Cash remains viable as a privacy tool, particularly in the view of users,” The report includes.
The study revealed that, while most Ethereum block builders appeared to cooperate and censor Tornado Cash transaction, two builders continued to settle Tornado Cash transactions. The report states that these two players are responsible for more than 50% of all non-cooperative block.
The report also states that non-cooperative validators seemed to be without monetary incentives. It says that blocks containing Tornado Cash transaction had lower rewards in general, suggesting that validators are less motivated. “motivated by philosophical reasons.”
The Treasury’s ability to deem sanctions as a threat sparked debate. “person.”
Six Ethereum blockchain users filed a suit against OFAC in September 2022 challenging their authority to declare Tornado Cash a Specially Designated National (SDN). In September 2023, a Texas federal judge sided with Treasury and ruled that the sanctions were allowed. “person” What is an “individual or entity.”
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
