Trading: dYdX confirms that it has suspended accounts linked to Tornado Cash

The wind is blowing hard on cryptos – The crypto sector has been in the middle of a storm for the past few days. The FBI launched hostilities against dozens of ETH addresses who have used the token mixing service Tornado Cash. The dYdX platform is a decentralized derivatives exchange based on the Ethereum blockchain, powered by StarkWare.

>> Come and take your first steps in the Bitcoin universe on Binance <<

Cryptos under close surveillance

The subject of the regulation is treated almost daily in our columns. Every day, every week lawmakers come out of the woodwork to innovate in terms of user restrictions. In all objectivity, many malicious actors just as regularly give reasons to strengthen surveillance around cryptocurrencies.

The publication this week by the FBI of a ethereum address blacklist having used Tornado Cash has had the effect of a bomb. Several services such as Coinbase or Circle (issuer of the stablecoin USDC) have integrated this blacklist into their database, preventing any transfer to their platforms.

Over the past few hours, many dYdX users have seen their frozen accountdisplaying the following message:

Notification of dYdX to certain users

Decentralization takes a hit

Branded in cardinal value by the entire ecosystem, the decentralization of web services is supposed to guide the people. However, in practice, this turns out to be very theoretical. Or rather limited, with friction points that allow such arbitrary and vertical blocking of users. Quite the opposite of a decentralized system, subject to no higher authority.

In a blog post, the trading platform confirms that it has blocked certain addresses “that have interacted” with Tornado Cash, in order to comply with US law. That is to say prohibit addresses on the OFAC blacklist from using its services.

However, some users claim to have never used this service. On his side, dYdX acknowledges that some accounts have been wrongfully suspended and many have been blocked” because they owned a certain portion of their funds was associated with Tornado Cash, even in infinitesimal amounts»

The exchange, however, recalls that it does not have the ability to seize customer funds and that customers are always sovereign in terms of token custody (custody) once deposited on the protocol. In order to stay within the nails of American legislation, dYdX uses a subcontractor who monitors the compliance of operations. He reported a massive influx of funds associated with Tornado Cash recently.

Will you support the revolution promised by Bitcoin and Ethereum? It’s up to you to get on the crypto train! To do this, and start getting acquainted with this exciting world, do not wait for you create an account on Binancethe leading Bitcoin and crypto exchange (affiliate link).

Leave a Comment