Tornado Cash DAO has been shut down as it “can’t fight the US” and contributors are scared of being prosecuted

The Treasury Department sanctioned the crypto mixer Tornado Cash as well as several crypto wallet addresses associated with the service. That means the protocol and its associated smart contracts are now blacklisted, making them illegal for Americans to use. According to information from the Tornado Cash contributor, Tornado Cash DAO multi-sig wallet was deleted.

Tornado Cash DAO shuts down as it “can’t fight the US”

Tornado is a privacy tool that lets users obfuscate where their funds have been and where they’re going. Basically, it turns the transparency of blockchain technology into a black box, hiding your crypto activity.

The original quote is as follows: “The multi-sigs shut down the DAO… we’re all out. Better safe than sorry, unless it all calms down a bit.” Reportedly, “nobody did anything wrong… [the] world is fucked up” about the incident. They confirmed that the DAO was shut down “to keep members safe and avoid legal issues” as the situation is “dangerous for all devs,” even those outside the Tornado Cash ecosystem.

There is decentralization in the TRM Labs API that causes protocols like Aave, Uniswap, and Balancer to penalize addresses associated with Tornado Cash. This is “a bad situation”. Currently, TC members also confirm that they are disappointed by what just happened. The future of Tornado Cash looks extremely bleak as its TORN token drops 20% on the day. The role of the TORN governance token is now known as the DAO is closed and the multi-sig wallet is removed.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like