The dYdX trading platform freezes the accounts of clients who interacted with Tornado Cash

dYdX, the decentralized trading platform, has just announced that it has blocked the accounts of its users who have interacted with the Tornado Cash protocol in order to comply with recent sanctions issued by OFAC. However, the platform seems to have difficulty sorting out those who have interacted with the protocol and those who have received funds that have simply passed through it.

dYdX blocks accounts related to Tornado Cash

The trading platform dYdX announced via a press release that she had blocked all accounts that have interacted with the Tornado Cash protocol in the past, with no minimum amount.

This announcement follows the recent blocking of the cryptocurrency mixer by theOffice of Foreign Assets Control (OFAC), accusing him of having facilitated the laundering of more than $7 billion in the form of cryptocurrencies, especially during the massive hack at $625 million from the Ronin sidechain last March.

dYdX declares in particular that it uses “compliance providers” in order to control the funds passing through the platform and ensure that these are not referenced in cases of ransomware, malware or sexual exploitation of minors. According to the press release, a “significant increase” in the number of accounts could be observed. following the sanctions recently decided by OFAC.

Some user accounts have, according to dYdX, wrongly blocked insofar as the latter had been able to receive funds passed by Tornado Cash without them coming directly. As such, the accounts concerned have thus been unlocked. The platform thanks its customers for their understanding, referring to an “unprecedented event”.

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The carnage continues

The very recent OFAC decision is however already heavy with consequences : within a few days, Circlethe USDC issuing company, said it had frozen for 75,000 dollars of this stablecoin on different addresses, specifying that it was only “ comply with sanctions requests “.

In the aftermath of Tornado Cash being blacklisted, some people did not run out of emphasize the impossibility of banning an application whose code is open sourcesince the latter is by definition infinitely replicable and transformable.

And yet, even the GitHub platform, on which the code in question was hosted, has decided to take action by deleting the latter, as well as the various developer accounts who worked on the project. This raises the question of whether this kind of decision is really measured, since the code in question is not incriminable, contrary to the use that can be made of it.

For Matthew Daniel Greenassociate professor of computer science and specialized in applied cryptography, this is an attack on the rights of citizens:

“For information, I am not in favor of North Korea laundering stolen money. […] But I’m also not in favor of governments stepping in and destroying all services that allow users to protect their transaction history so it won’t be read by the world. »

👉 In The News: Vitalik Buterin reveals he used Tornado Cash to help Ukraine

published by editions Larousse

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Source: dYdX

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