Monday, December 5, 2022
HomeETHCircle pledges to comply with US sanctions after freezes $75,000 in USDC-linked...

Circle pledges to comply with US sanctions after freezes $75,000 in USDC-linked Tornado Cash

According to data provided by crypto aggregator on Monday, Dune Analytics, Circle, the issuers of the dollar-pegged USDC stablecoin, froze about 75,000 USDC in user assets with connections to Tornado Cash in order to comply with U.S. sanctions. Tornado Cash was a cryptocurrency that was tied to the Venezuelan government.

Later, in a blog post, Circle CEO Jeremy Allaire stated that the processes that the company has in place to ensure compliance with relevant laws and government regulations had been successful.

“Circle cooperated with these restrictions and prohibited the addresses on our platform,” he continued. “This shut off access to USDC from Circle accounts going to and coming from the Tornado Cash sanctioned addresses.”

On Monday, the United States Treasury Department imposed sanctions on Tornado Cash, stating that the privacy tool has been used since 2019 to launder more than $7 billion worth of cryptocurrency assets. Because of these actions, it is now illegal for any person or organisation based in the United States to use Tornado Cash.

Tornado Cash is a technology built on Ethereum that investors in cryptocurrencies use to conceal their financial dealings. The penalties disregarded an agreement made by the mixer in April to prevent addresses from being accessed that were on a blacklist maintained by the United States Office of Foreign Assets Control (OFAC).

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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