Decentralized derivatives exchange dYdX has confirmed that user accounts that have previously interacted with the Tornado Cash mixing service have been blocked.

The platform announced that it uses the compliance services of a third-party provider for regulatory compliance. After the US Treasury Department sanctioned the mixer for laundering $7 billion, the provider flagged accounts with Tornado Cash. The Marketplace system has automatically enabled the restrictions.

“Many accounts have been suspended because a certain portion of the funds in the wallet (even insignificant amounts in many cases) were at one point linked to Tornado Cash,” the team said.

dYdX acknowledged that the sudden flood of blockchains affected “many users” who were often unaware of the source of their funds and did not directly use the mixer.

The platform has made appropriate adjustments to its compliance policy that allows certain accounts to be unblocked. However, the team noted that some restrictions on marked funds will remain.

“As a reminder, dYdX does not have the ability to freeze client funds. All users who have deposited funds into the protocol can always withdraw their assets and store them on their own,” the platform said in a statement.

Previously, as part of sanctions restrictions, Circle had blacklisted the USDC addresses of 38 Tornado Cash wallets. One of the stablecoin operators blocked the movement of at least 75,000 USDC.

Amid these developments, DeFi project MakerDAO began developing a plan if the protocol’s core smart contracts fell under government sanctions, according to The Defiant.

According to Daistats, USDC’s stake in securing the project’s DAI stablecoin is approximately 33% with ~$2.6 billion.

The publication noted that other DeFi projects are also considering plans to reduce reliance on USDC.

Realizing that the daily transaction volume on the service increased from $2.45 million to $2.99 ​​million after the sanctions and blocking of the Tornado Cash site, Block experts attributed this mainly to the protest of users who sent a large number of transactions. for 0.1 ETH.

The Flash gang was started on August 9 by an unidentified person who sent small amounts of money to famous people via a mixer. Buyers include EthHub co-founder Anthony Sassano, Loomdart crypto trader, Coinbase CEO Brian Armstrong, TV host Jimmy Fallon, YouTuber Logan Paul and Randy Zuckerberg.

The founder of Tornado Cash previously revealed that the authorities blocked the site’s static landing page, but there was no access to the application.

Recall that experts predicted increased pressure on cryptocurrency mixing services and evaluated the consequences of sanctions against Tornado Cash.

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