Tornado Cash Faces Outflows as Users Withdraw Funds

The assets of the Tornado Cash mixing service fell by 15% after the OFAC was added to the sanctions list. The Block reports.

Users effectively stopped depositing and accelerated withdrawals of funds previously deposited.

Since the sanctions were announced, inflows totalled $6 million, 78.5% below the level for the same period last week.

During this period, users withdrew $62 million from the protocol, equal to 15% of the balances across its addresses. In the first three hours, outflows reached $14.7 million.

Earlier it was reported on August 11 that accounts of Tornado Cash users were blocked on the decentralized derivatives exchange dYdX. ForkLog reported that MakerDAO was developing a plan in case the mixer’s main smart contracts come under sanction by authorities.

Earlier, Vitalik Buterin said that he had used the service to donate to Ukraine.

On August 9, a Tornado Cash user sent 0.1 ETH to multiple addresses. Among the recipients were EthHub co-founder Anthony Sassano, crypto trader Loomdart, Coinbase CEO Brian Armstrong, as well as television host Jimmy Fallon, YouTuber Logan Paul and Randi Zuckerberg. The community perceived this as a protest against US authorities.

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