Tornado Cash is unique, according to TRM Labs, in reaction to OFAC sanctions

October 15, 2022

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Tornado Cash is unique, according to TRM Labs, in reaction to OFAC sanctions. DRM Labs is a blockchain analytics company that helps identify blockchain risks for financial institutions, crypto businesses and government agencies. The company provides a variety of services, including risk assessment of virtual asset service providers and other crypto businesses, investigation of the source and destination of crypto funds and transaction monitoring. DRM Labs can run all its functions and cross-chains.

Previously, sanctioned entities were centralized in nature and used only for money laundering or other criminal purposes. However, Tornado Cash has legitimate use cases where users want to clear a counterparty transaction. A simple example: an employee wants to receive money in cryptocurrency, but the employer does not see his wallet. In an interview, Redboard explained that DRM Labs was originally a technology company with a team based in Silicon Valley. It has a vision for a decentralized future, but aims to ease the transition by trying to remove the attackers from the current iteration of web3. The company believes that Blacksein covers all the people in the world, acknowledging that it is an unthinkable kingdom that has more potential dangers. DRM labs designed to “promise encryption to leave very valuable risks.” The company collaborates with police agencies, encrypted workplaces and traditional financial institutions. TRM Labs works with law enforcement agencies to detect illicit money flows and works with DeFi protocols, exchanges and NFT providers to track transactions. Finally, the company is working with financial institutions to accept cryptocurrency. Compliance with restrictions
Redbord notes that while TRM has a variety of products that serve different types of organizations, its Approval Compliance API is one of the most successful.

Immediately after most of the world recognized Russia’s invasion of Ukraine, TRM Labs created a data feed API that included all crypto wallet addresses of sanctioned individuals. They opened it up for use by smaller exchanges that didn’t have a large legal team. Organizations using this API use TRM data to decide whether or not to accept an individual. According to Redbord, the product has recently received a better rating and its scope has expanded with all current sanctions, including the ban on Tornado Cash.

Read more: Due to financial difficulties, the cryptocurrency exchange Vauld suspends withdrawals, trading, and deposits.

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