The value of Tornado Cash is decreasing, not due to market factors but because of recent controversies. The Office of Foreign Assets Control recently added Tornado Cash to its list of Special Designated Nationals. This means that no American can use the token.
This action effectively bans Tornado Cash’s participation in the largest cryptocurrency markets.
Many owners of Tornado Cash’s native coin, TORN, also liquidated their investments in response to the news. TORN’s current value has dropped 87.03% from its August 7th high of $30.25
Tornado Cash Linked To Nefarious Activities
Even before the OFAC decided to add Tornado Cash to its special list, TORN had been linked to multiple high-value crypto crimes.
To hide the origins of the stolen funds, the Lazarus Group used TORN to aid them. This breach took place on the Ronin Network sidechain, which is Ethereum-based.
The network hosted the game Axie Infinity in March 2022. It saw its largest player count. This allowed malicious actors, such as Lazarus Group, to quickly zero in on both the system and the game. It resulted to the theft of 173,600 Ether, and 25.5 Million USDC.
Total dollar value is $625,000,000. The OFAC will later this year penalize this project as well as all associated wallets because of this attack.
TORN is the Subject of Sanctions
Tornado Cash is used to transact stolen cryptocurrency by criminals. In the DeFi domain, mixers are special programs that ostensibly enhance privacy by blending transactions, so obscuring the money’s path from point A to point B.
In 2019, more than $7 billion worth of cryptocurrency was laundered using Tornado Cash, according to a U.S. Treasury Department report.
At the moment, TORN is experiencing a substantial impact from sanctions. A source claims that there are only 100 users currently connected to the network.
Transactions in excess of $100,000 stopped being possible after the declaration of sanctions.
TORN trades just above 38.20% Fib level of the retracement at the moment. This level will support the price of the crypto due to the close correlation between the buying and selling quantities of bulls and bears.
The sanction will dismantle the project. It’s only a matter if it reaches zero.
Source: TradingView.com| Source: TradingView.com Featured Image from The Daily Hodl Chart: TradingView.com