Residents and citizens in the United States may get a license to mix Ethereum coins with Tornado Cash, according to the Treasury Department. The move to prohibit Tornado Cash in August caused the crypto community to be in a conundrum over privacy and government oversight, which has put many wondering whether their daily crypto activity might result in criminal charges. The Office of Foreign Asset Control (OFAC) also addressed other pressing questions about Tornado Cash''s sanctions.
The new guidelines provides a platform for users to reclaim their funds from the private transaction application by seeking an OFAC license and an OFAC authorization to undertake a transaction that would otherwise be prohibited.
According to DefiLlama, about $173 million (about Rs. 1,400 crore) has been left sitting in Tornado Cash''s smart contract at the time of publication. Depending on the amount, some of the funds will be used by individuals who are concerned about the legal consequences of their withdrawal.
Three plaintiffs with ties to Tornado Cash filed a lawsuit against the Treasury Department last week, arguing that the sanctions had temporarily frozen their legally deployed assets, a lawsuit that may be rescheduled right now, owing to the possibility of an option to withdraw funds.
Following the initial sanctions announcement, anonymous users were protested by dusting or sending a small amount of ETH to Tornado Cash to several crypto wallets, including those of prominent celebrities. The OFAC''s regulations would apply to these transactions, but the OFAC will not prioritize enforcement in this regard.
The Tornado Cash app has gone offline due to the sanctions, but it has been possible to get access to other platforms. Keeping an eye on any transaction with Tornado Cash is still prohibited for US citizens and residents.
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