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Even though most popular cryptocurrencies have increased by double-digit percentages over the last week, there was virtually little excitement on Crypto Twitter. The Treasury Department's decision to prohibit American people from utilizing crypto privacy mixer Tornado Cash or interacting with Ethereum addresses related to its community-dominated social media conversation this week.
Since its inception in 2019, criminals have used the site to launder more than $7 billion worth of virtual money, according to the Treasury. One Twitter user noted that nearly the same sum of money was tied up in Tornado when sanctions were implemented.
Harry.eth (@sniko_), a security employee at MetaMask, stated on Twitter that the Treasury Department cannot sanction all of Tornado. It remains on layer two protocols.
Vitalik Buterin, the inventor of Ethereum and a Russian native, confessed to using the protocol to contribute money to Ukraine on Tuesday.
The enforcement of the Tornado ban may prove tricky. Despite the prohibition, it was rumored on Tuesday that an anonymous Tornado user was dusting “hundreds” of Tornado wallets and delivering modest sums of Ethereum to industry heavyweights and celebrities.
Notorious chained snitch Fat Man Terra gave a list of the celebrity receivers of the donor to date.
As a result of Tornado’s unknown donor, TRON’s CEO Justin Sun was barred by Aave.
Hayden Adams, the creator of UniSwap, emphasized the need for privacy technologies in our daily lives. Adams also referred to the sanctions as a “free speech problem,” reflecting the sentiments of numerous industry experts on Twitter. The latter cite the 1996 Federal court decision “Bernstein v. U.S.,” which defined “source code as protected speech” under the First Amendment.
It is also important to note that Github, the hosting code site that hosted Tornado Cash’s code, took action on Monday. Github revoked the Tornado code and suspended the account of Tornado Cash founder Roman Semenov.
The Netherlands Crime Agency (FIOD) announced the arrest of a “suspected” Tornado Cash creator on Friday. The crypto community and privacy campaigners decried the decision to declare war against programmers on Twitter.
The governance analyst at crypto intelligence firm Messari, Joel Miyazawa, cannot see why the UniSwap community is so divided over a $74 million proposal to establish a separate UniSwap Foundation.
In response to the Tornado Cash sanctions, USDC issuer Circle froze all USDC in wallets on the government’s sanctions list. This forced MakerDAO to reevaluate its exposure to Circle, the USDC central issuer. Currently, MakerDAO’s stablecoin DAI is tied to USDC.
Vitalik Buterin, the developer of Ethereum, responded swiftly to the plan by labeling it “a hazardous and stupid concept.”
On Friday, Chinese blockchain journalist Colin Wu built on the tale.
The Ethereum Merge now has a definitive date … To a certain extent !?