Tornado Cash Community Fund multisignature wallet comes under DAO governance

All signatories of the Tornado Cash Community Fund multisignature wallet relinquished their authority to manage it following the sanctions imposed on the mixer.

tornado cash multisig disbanded, the last remaining owner is the daohttps://t.co/S6cBnhflSz

— banteg (@bantg) August 14, 2022

In 2021, the Tornado Cash community supported the creation of a foundation in TORN tokens to support projects for improving the protocol. Users via a vote determined whose contribution deserved compensation.

Five elected community members controlled the transactions, requiring the consensus of four of them.

On 12 August, signatories began relinquishing control of the funds. By 14 August, all participants of the multisig wallet had revoked access, with the DAO being the only owner left DAO.

After OFAC’s designation for laundering $7 billion of the TORN token, the price of TORN had fallen from above $30 to $13.2 at the time of writing.

The mixing service also faced withdrawals of user funds. By August 11, clients had withdrawn $62 million, or 15% of balances on accounts.

In compliance with the restrictions, Circle blacklisted USDC addresses of 38 Tornado Cash wallets. One of the stablecoin operators blocked movement of at least 75,000 USDC.

Some platforms, including a DEX dYdX, began blocking accounts linked to the mixer.

Tornado DAO members urged the community to hire a team of lawyers to challenge the imposed sanctions.

On August 12, Dutch authorities arrested a developer allegedly linked to Tornado Cash.

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