Ethereum (ETH) based cryptocurrency mixer Tornado Cash is banned by OFAC, a US Treasury Department. Despite various protests from the crypto community, the software will no longer be used in the United States. Recently, Treasury explained how users can withdraw their funds from Tornado Cash.
The new guidelines for withdrawing funds from Tornado Cash
To withdraw Tornado Cash assets, you must first obtain a special license by sending a request to OFAC. The Office of Forigen Asset Control (OFAC) said the license application can be done online.
You must know that only users who transacted before August 8 can apply for the license. In addition, it is necessary to expect to provide several personal information to succeed in obtaining this document.
In a statement, the Treasure said : “US nationals should be prepared to provide, at a minimum, all relevant information regarding their transactions with Tornado Cash. This includes sender and recipient wallet addresses, transaction hashes, date and time of the transaction(s), and amount(s) of virtual currency.»
In addition, several members of the crypto community, including Coinbase employees, have filed complaints against OFAC. According to them, the regulator exceeded its authority by banning Tornado Cash. Cryptocurrency exchange Coinbase said it would fund the plaintiffs’ legal effort.
On August 8, Tornado Cash was blacklisted by the US Treasury Department called OFAC. The Treasury justified its action by claiming that the mixer posed a threat to national security. It should be noted that Tornado Cash is the second cryptocurrency mixer that the Treasury sanctions, the first being Blender.io. The latter was banned in May.
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