On April 15, 2022, Ethereum mixer Tornado Cash team announced that the project began using Chainalysis oracle to block wallets subject to OFAC (Office of Foreign Assets Control) sanctions.
Tornado Cash is using the Chainalysis oracle contract to block addresses whose access to the decentralized application has been banned by OFAC,” the official Twitter account said.
Maintaining financial privacy is necessary to preserve our freedom, but it should not come at the expense of violations.
The decision came after the U.S. Treasury and OFAC released an update on the Ethereum wallet of hacker Ronin Bridge. The Ethereum address is now under sanctions and U.S. companies and citizens are prohibited from making transactions involving it. According to OFAC, the address is linked to a North Korean hacker organization known as Lazarus Group.
This decision by Tornado Cash has caused a flurry of criticism. True, the changes introduced by Tornado Cash can be circumvented by not only switching to other Ethereum addresses, but also by running a contract without using the external interface of the Tornado Cash protocol.
Don’t worry guys, your favorite hackers will still be able to launder money stolen from you directly using a smart contract,” commented one user on Tornado Cash’s Twitter post.