SEPOY.net
No Result
View All Result
Sunday, July 20, 2025
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
No Result
View All Result
SEPOY.NET
No Result
View All Result
Home Crypto

Trolls Have Sent an Estimated $52,000 in Small Tornado Cash Payments Following OFAC Designation

Nicholas by Nicholas
August 11, 2022
in Crypto
0


Earlier this week, Tornado Cash became the second ever mixer and first ever DeFi protocol to be sanctioned by OFAC. Soon after, Crypto Twitter was ablaze with reports of celebrities, industry notables, and others being sent small transactions from Tornado Cash, each of which could theoretically be an OFAC violation.

READ ALSO

Donald Trump signs the Genius Act on Stablecoins-The 1st Crypto law is voted in the United States

Airdrop Farming: 30,000 discovered phones used to raise cryptos

Credit: @josephdelong on Twitter

Most observers have written these transactions off as trolling, and while this activity certainly can’t be called harmless given that a sanctioned entity benefits in the form of transaction fees, we think it’s unlikely to set off alarm bells at OFAC. However, it will likely create more work for compliance teams at cryptocurrency businesses, who are grappling with what sanctions on DeFi protocols will mean for them in practice.

Below, we estimate the scope of Tornado Cash trolling by looking at the number of Tornado Cash transactions involving a deposit of 0.1 ETH — we chose this number as our threshold because it’s the minimum amount that can be mixed using Tornado Cash. Plus, why would someone spend more than that for a simple joke?

The sanctions against Tornado Cash were announced at 10:30am ET on August 8. Between then and 3:00 PM ET on August 11, there were 300 outgoing transactions from Tornado Cash that began with inputs of 0.1 ETH or less, totaling just over $52,000 . Many of those transactions went to cryptocurrency industry leaders or venture capitalists, such as Coinbase CEO Brian Armstrong and Andreessen Horowitz venture capitalist Ben Horowitz, as well as celebrities with publicly promoted cryptocurrency addresses, such as Shaquille O’Neal, Jimmy Fallon, and Snoop Dogg .

The graph above begins on August 6, two days before the OFAC designation, and it’s interesting to note a large spike in 0.1 ETH transactions the day after the designation, suggesting that the sanctions influenced Tornado Cash user behavior. Keep in mind though, it’s possible that not all of these transactions were trolling attempts. Tornado Cash allows users to wait as long as they want between when they send funds to the mixer and receive “clean” funds back. It’s entirely possible that some users sent crypto to Tornado Cash before the OFAC designation and decided to get it back afterwards, regardless of the sanctions risk. We should also note that some users made bigger withdrawals from Tornado Cash after the designation, but that overall, its transaction volume has fallen significantly.

Sanctions enforcement is harder in DeFi than in CeFi. What does that mean for compliance teams?

Trolling aside, these transactions underline the differences in enforcing sanctions against a DeFi protocol like Tornado Cash and a centralized service like, say, the darknet market Hydra. In the latter’s case, the service can be rendered virtually unusable by pairing sanctions with a takedown of its website. In the case of a protocol like Tornado Cash, the smart contracts run in perpetuity, meaning users can still transact with it, allowing the activity we’ve covered here.

As the cryptocurrency ecosystem continues to change, we’re continuously delivering improvements to our compliance suite that enable organizations to react to new situations like these, including our free sanctions screening oracle for DeFi protocols, configurable risk profiles, and more. You can contact us here to learn more. In the meantime, we’ll continue to monitor for ongoing Tornado Cash usage — trolling or not.

This material is for informational purposes only, and is not intended to provide legal, tax, financial, or investment advice. Recipients should consult their own advisors before making these types of decisions. Chainalysis has no responsibility or liability for any decision made or any other acts or omissions in connection with Recipient’s use of this material.



Related Posts

Donald Trump signs the Genius Act on Stablecoins-The 1st Crypto law is voted in the United States
Crypto

Donald Trump signs the Genius Act on Stablecoins-The 1st Crypto law is voted in the United States

July 19, 2025
Airdrop Farming: 30,000 discovered phones used to raise cryptos
Crypto

Airdrop Farming: 30,000 discovered phones used to raise cryptos

July 19, 2025
押収暗号資産を巡る NCA 職員の不正行為と Chainalysis の分析
Crypto

押収暗号資産を巡る NCA 職員の不正行為と Chainalysis の分析

July 19, 2025
2025 年上半期暗号資産犯罪動向速報:北朝鮮による盗難資金が過去最大規模に
Crypto

2025 年上半期暗号資産犯罪動向速報:北朝鮮による盗難資金が過去最大規模に

July 19, 2025
Chainalysis POV: What the Genius and Clarity Act Bills Really Mean for Crypto Compliance
Crypto

Chainalysis POV: What the Genius and Clarity Act Bills Really Mean for Crypto Compliance

July 18, 2025
How to migrate your cryptos on another blockchain with a bridge?
Crypto

How to migrate your cryptos on another blockchain with a bridge?

July 18, 2025
Next Post

Emmy Predictions: Directing (Drama Series) – Hwang Dong-hyuk and Ben Stiller Become Challengers to the ‘Succession’ Nominated Trio

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About

Sepoy.net is a perfect place for people who want daily updates on news related to business, technology, entertainment, health, cryptocurrency etc.

Contact: hello@sepoy.net

Major Categories

News

Business

Tech

Economy

 

Recent Posts

  • Casinos En internet Fiables rock climber PayPal y no ha transpirado Legales en De todo adorno de el ambiente golden goddess juego de tragamonedas TOP 2024
  • Better Gambling on play monopoly demo line Sites 2025: Gamble A real income Game & Victory
  • Fruits Beverage Video slot Enjoy 100 percent free Igrosoft Harbors 2025

Pages

  • About Us
  • Contact Us
  • Disclaimer
  • DMCA
  • Home
  • Privacy Policy

© 2023 Sepoy.net

No Result
View All Result
  • Home
  • Business
  • News
  • Health
  • Tech
  • Science
  • Lifestyle
  • Travel

© 2023 Sepoy.net