Tornado Cash Utilizing Chainalysis oracles to obstruct access from OFAC sanctioned addresses

April 16, 2022

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Tornado Cash utilizing Chainalysis oracles to obstruct access from OFAC sanctioned addresses

Recently, Tornado Cash declared that it was utilizing oracle agreements from Chainalysis to block wallet addresses ruled by the U.S. Office of Foreign Assets Control, or OFAC. The move arrives after the U.S. Department of the Treasury linked North Korean cybercriminal Lazarus Group as an alleged perpetrator for the current $600M + Ronin Bridge abuse. As per blockchain analytics company Elliptic, the cyberpunks have sent around $80.3M cost of ETH through Tornado Cash. “Conserving economic privacy is crucial to conserving the independence; nonetheless, it should not arrive at the price of non-compliance,” said the Tornado Cash squad.

Tornado Cash is an outstanding digital currency variety utilized to excite the trail of transactions for privacy. The Chainalysis Sanctions Oracle can substantiate if a digital currency wallet address has been included in a sanctions designation from the United States, European Union, or United Nations. But Tornado Cash co-founder Roman Semenov later illustrated that the device only slabs access to the decentralized application, or DApp, interface and not the underlying reasonable contract.

There has been evidence of Tornado Cash in various contentious decentralized finance activities. In February’s $375M Wormhole exploit, cyberpunks experimented with Tornado Cash utilizing seized funds. Also in the same month, the LooksRare squad alertly used Tornado Cash to cash out over $30M in crypto. A recent Rare Bears Discord phishing attack that arrested $800 thousand in nonfungible tokens, involved cyberpunks funneling the snatched funds through Tornado Cash.

Documents also arose that accounts from a $33M exploits were being cleaned via the DApp. Nonetheless, it occurs that Semenov has had sufficient of the protocol’s federation with apparent illicit actions, communicating the probable outcome of prison time for disobedience with regulators in obstructing access to blacklisted someone.

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