In the week following the sanctioning of the Tornado Cash website by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), the price of the token underpinning the system is down 56%, starting the week at a high of $31.56 and ending the week at a low of $13.09, according to CoinMarketCap.
The Tornado Cash DAO uses Tornado Cash (TORN), an ERC20 token, as its native token for voting and managing governance. It presently has a market valuation of $15.5 million, ranking it as the 691st biggest cryptocurrency.
The Tornado Cash website was taken offline by Github after the US Treasury announced its penalties and the price of the token dropped as a result.
Tornado Cash, which was introduced in 2019, is a blockchain system that allows users to pay and receive money anonymously by combining their Ethereum tokens with a variety of other tokens.
The usage of TORN by the North Korean hacker collective Lazarus Group and the laundering of more than $103.8 million from the Horizon Harmony Bridge and Nomad Token Bridge attacks earlier this summer were both highlighted by the U.S. Treasury in its decision to punish Tornado Cash.
The group’s Discord server vanished after a discussion within the TORN community, and unidentified individuals also took the forum on the community website offline. At the same time, Dutch law authorities detained a member of the team of developers who created TORN.
Tornado Cash is the subject of a criminal investigation
The Tornado Cash community seems to be suffering particularly badly during this crypto winter. Sanctions, closures, and arrests appear to have handed the project a fatal blow in addition to the present bear market, as holders continue to evacuate.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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