In an unprecedented move, the U.S. Treasury Department levied sanctions on the crypto mixing company Tornado Cash earlier this month. The action is taken over allegations that the crypto mixer was used to launder virtual currency. The expected valuation of laundering digital assets is over $7 billion.
The action taken by the Treasury Department has faced colossal backlash, especially from the crypto industry.
It is believed that this action will not only impact just Tornado Cash but the whole crypto ecosystem. Some view it as an infringement of their privacy while doing online transactions.
Future uncertain after Tornado cash ban
In the last few days, the crypto industry has witnessed more crackdowns by regulators. The manner in which cryptocurrencies operate does not match the desires of outdated governmental regulations. There are apprehensions that in the future, many other such decentralised platforms could meet the same fate.
After the government has made any interaction with Tornado equivalent to a crime, it has become difficult for people to achieve transactional secrecy on the most-used blockchain, Ethereum. At the same time, those disobeying the government order will have to find a way to save themselves from any regulatory action.
