Tornado Cash Reveals Using Chainalysis Oracle Contract

Tornado Cash, a popular Ethereum mixer, has announced a partnership with Chainalysis, a blockchain intelligence startup.

The integration follows sanctions implemented by Western countries to hurt Russia's economy and punish President Vladimir Putin, high-ranking officials, and those who have benefitted from his dictatorship.

  • According to the official tweet, the measure intends to prevent sanctioned addresses from using the decentralized application by the US financial intelligence and enforcement agency, the Office of Foreign Assets Control (OFAC).
  • A list of sanctioned crypto wallets can be found on the OFAC website.
  • While financial privacy is paramount, Tornado Cash acknowledges that it should not be sacrificed at the expense of non-compliance.
  • The protocol's creator, Roman Semenov, highlighted that the changes only affect the front-end, not the smart contracts. "Smart contracts are immutable," the executive stated.
  • A front-end blockade displays a halfway restriction after Semenov stated that imposing sanctions unfeasible."
  • Tornado Cash, which is recognized for obfuscating the money trail, is one of the few protocols to have become an Ethereum mainstay since its launch nearly two years ago.
  • The protocol has been viewed with skepticism since its inception, thus the negative headlines surrounding it is nothing new.
  • Furthermore, its link to the previously unknown $655 billion security breach on blockchain bridge Ronin Network, in which the exploiter allegedly transported the stolen Ether (ETH) stockpile using privacy protocol, does not assist its cause.
  • Jonathan Levin, co-founder of Chainalysis, recently testified before the US Senate, revealing that the firm had uncovered no serious evidence of Russians circumventing sanctions by utilizing cryptocurrencies.