NY Fed Report Reveals Mixed Compliance with Tornado Cash Sanctions
Despite significant drops in usage, some Ethereum entities continue to process Tornado Cash transactions driven by ideological reasons.
- The US Treasury sanctioned Tornado Cash in August 2022, leading to an immediate decline in transaction volume and user diversity.
- A recent NY Fed report found that while most Ethereum block builders cooperated with the sanctions, two major builders did not.
- The total value deposited in Tornado Cash addresses increased post-sanction for all but the largest pools.
- Non-cooperative validators processed Tornado Cash transactions for lower rewards, indicating philosophical motivations.
- The sanctions have sparked legal debates over the Treasury's authority to designate Tornado Cash as a 'person.'
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