The case of Tornado Cash is heating tempers. The US has outlawed the Ethereum tumbler through OFAC, which reports to the US Treasury Department. Anyone who interacts with Tornado Cash now risks significant restrictions. US citizens and companies also face severe penalties if they are prohibited from accessing the smart contract.
Tornado Cash primarily makes it possible to obfuscate Ethereum transactions and ensure confidentiality between the parties. Since the mixer is based on smart contracts, it cannot simply be switched off. Instead, efforts were directed against Tornado Cash's website and social media channels. In the Netherlands even one of the developers was arrested on Wednesday . It is unclear what the suspect is supposed to have done. The only obvious thing is that he co-programmed Tornado Cash.
Critics do not see it as a crime because the technology is neutral and a developer cannot influence whether it is used for criminal activities. The USA, of course, sees it differently. For them, any support for hackers is a crime. They suspect that some hacker groups are working for North Korea and are co-financing armaments programs with their activities.
Dusting attack on prominent wallets
Since the mixer is still accessible despite the efforts of various authorities, a small movement has decided on a particularly creative protest action. Tornado Cash addresses are blacklisted. Major DeFi protocols such as Aave use the blacklist to block addresses that have interacted with the mixer.
It is therefore possible to specifically paralyze Ethereum addresses. All it takes is 0.1 ETH, which is sent to the victim via Tornado Cash. After that, the target address is initially burned and can no longer control various decentralized financial applications.
So far it is unclear how many people and companies are affected by the dusting attack. So far, only Justin Sun has spoken out publicly because he was no longer able to access Aave. A short time later, however, the case seemed to be solved again. However, whether less prominent Ethereum users have a similarly good connection and are unblocked is questionable. This practically opens the door to trolls and there are half-joking discussions on Twitter about who could be targeted next and what the consequences would be.
In addition to Sun, PUMA, Beeple, Steve Aoki and influencer Logan Paul were also targeted. It is said that Coinbase CEO Brian Armstrong was also affected.
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