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US Sanctions Virtual Currency Mixer Tornado Cash: What Will Be The Impact of This Crackdown?

In a major move, the US sanctions Tornado Cash, a virtual currency mixer, after news of money laundering of more than $7 billion

In a major move, the US Treasury has sanctioned Tornado Cash, a virtual currency mixer, after news of money laundering of more than $7 billion cost of virtual currency since its foundation in 2019. 

Tornado Cash Blacklisted by US Treasury

As per the US Treasury, the sanctioned amount contains more than $455 million robbed by the Lazarus hacking Group. Lazarus Group is a cybercrime gang operated by the North Korean state. This group was already sanctioned by the US in 2019. It was believed to be the biggest known virtual currency theft to date. Thereafter, the Treasury stated that Tornado Cash was utilized to launder more than $96 million of hostile threat actors’ accounts emanated from the June 24, Harmony Bridge Heist, and at most nominal $7.8 million from the August 2 “Nomad Heist”.  

For now, Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E Nelson, in a comment, highlighted that Tornado Cash has continually ignored and failed to inflict proper rules created to prevent it from laundering money for malicious threat actors regularly. He further stated that the Treasury will persist in aggressively following steps against mixers that launder virtual currency for threat actors and those who help them.

Additionally, he stated that most cryptocurrency movement is legal, it can be utilized for illegal activity, such as dodging the sanctions via mixers, peer-to-peer exchangers, darknet websites, and exchanges. Earlier in May 2022, the North Korean regime blamed the Biden government for staging an “anti-DPRK racket” by misinterpreting the hierarchy of the country’s cyber functions. This arrives after the US sanctioned a cryptocurrency exchange that helped Pyongyang in stealing millions of dollars.

What is Tornado Cash and Why the US has sanctioned it?

The user puts the money into the smart contract, accepts a message as kind of a proof of ownership for the saved amount and the contract counts them to its list of duties. Subsequently, when the withdrawal is asked, the user enters the same message, and the smart contracts permit withdrawal to a new address, zkSnarks technology then confirms that withdrawal is done from unspent commitments, without disclosing the origin of the funds.

What will be the Imapct of sanctions on DeFi? 

The OFAC is the Office of Foreign Assets Control. They govern and execute sanctions against high-profile people including major global terrorists, drug trafficking heavyweights, and the financial/political elite of specific countries considered malicious to American interests. 

OFAC makes sure that Americans cannot lawfully conduct business with Cuba, Iran, Iraq, North Korea, etc without certain government permission.

WBTC is published by BitGo. Its commodities are in South Dakota and New York. They must follow OFAC sanctions or face million-dollar penalties and jail time for their execs. 

What does this mean for Ethereum miners who are US citizens?

There’s no lawful precedent we’re mindful of and we’re not attorneys but it doesn’t look pleasing. It appears conceivable that a violation of OFAC sanctions would happen if a miner or validator creates (or validates) an Ethereum block that includes a transaction containing one of the Ethereum addresses on the SDN list. Yet, how it’ll be executed is dark. 

One of the speculations is that Ethereum client software might be updated with an opt-in patch letting miners/validators flout contaminated mempool transactions to bypass breaching sanctions. Transaction censorship isn’t widespread but we could witness this being accomplished in-house by big US miners / stakers.

It may be a crapshoot for any US-based capital invested in Ethereum proof of stake as voting for blocks including illicit transactions could be an unlawful exercise. We hope either technical countermeasures (voluntary ban) or moving business outside US jurisdiction.

To summarize, the US is ready to utilize its most elevated level of economic sanctions generally dedicated to foreign powers and incredibly destructive people against a privacy development in crypto. If you are a US individual, any dealings with Tornado Cash are presumably illegal – such as Gitcoin grants, functioning for the project, operating or downloading its software, visiting its website, and saving/withdrawing from smart contracts. 

All assets in Tornado as of August 8th are corrupted. Tether, Circle, and BitGo will decline to bail these tokens. It is possible that the tokens will be withdrawn from Tornado anyhow and dumped into liquidity pools. Liquidity providers will be renounced carrying the bag. There is a remote risk of DEX collections for these toxic assets being blacklisted in their totality out of an abundance of warnings by the issuers (Circle, Tether, BitGo).

US individuals operating Ethereum mining or staking processes are perhaps in legal trouble – these companies may self-censor transactions or move offshore. The DeFi protocols outside DEX which communicate with Tornado’d finance may be in legal trouble, as may be their (US-based) team 

Conclusion

Ultimately, if you are a US individual with cash in Tornado: don’t violate the law, the funds aren’t worth it. 

Source: Altcoin

Altcoins

Crypto Casino of the Year BC.GAME Launches Its All-New Redesigned Website With Better Features

Willemstad, Curaçao, 4th October, 2022, Chainwire Today, BC.GAME announces the launch of its newly…

The post Crypto Casino of the Year BC.GAME Launches Its All-New Redesigned Website With Better Features appeared first on CoinJournal.

Willemstad, Curaçao, 4th October, 2022, Chainwire

Today, BC.GAME announces the launch of its newly redesigned website with more and better features for its players. This is one of the many efforts of BC.GAME in order to continue giving the best experience and satisfaction to its players around the world.

BC.GAME Introduces a Newly Redesigned Website

The main website showcases a new UI layout with a cleaner and slicker design compared to the old version. Players can also select different languages if they want to translate the descriptions written on the site. Languages such as Portuguese, Indonesian, Russian, Vietnamese, Korean, and Spanish are now available for players.

Recently, BC.GAME formed partnerships with two of the most recognized names in football and eSports—AFA and Cloud9. The new website features a dedicated page for sponsorships to keep the community updated about the latest events involving the casino’s partners.

Bold and Better Features for BC.GAME Players

As part of the new design, players will now be able to access helpful content—from game recommendations for each user, details of the game providers, and game descriptions.

Game interactions are now also available. Players can rate games, like, comment, share, and provide feedback on the games they play.

More security features are added, such as new additional Official Staff Verification page feature and an updated KYC feedback feature.

All players will have access to these bold and better features on the new BC.GAME website.

Chris, Chief Operating Officer at BC.GAME shares, “The iGaming industry moves fast. Keeping up with it is no small feat. As industry trailblazers, we pride ourselves on doing more than just staying ahead of the curve. Our goal is to create the curve. The only way to accomplish this is by keeping the communication channels with our community open. On behalf of the BC.GAME team, I would like to thank our loyal community for all the feedback and suggestions they have given by presenting this latest upgrade.”

About BC.GAME

BC.GAME is a community-based crypto casino that offers players the best online casino experience. Launched in 2017, BC.GAME is among the first casinos to support Lightning Network, not only revolutionizing the casino industry but also the blockchain space. With the recent addition of sports betting, users can enjoy more than 8,000 games, including sports, slots, live table games and even the famous Bitcoin (BTC) crash game. BC.GAME has won multiple industry awards, making it the Crypto Casino of the Year 2022. The platform accepts many leading cryptocurrencies and recently started accepting fiat payments.

Learn more: http://bc.game

Contact

PR, Issay Domingo, BC Game, [email protected]

The post Crypto Casino of the Year BC.GAME Launches Its All-New Redesigned Website With Better Features appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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