By the morning of August 13, three crucial DeFi protocols – Aave, Uniswap, and Balancer – had reportedly started blocking wallets that had interacted with Tornado Cash’s smart contract. Users of these platforms will get a message that their address is related to “blocked activity” and is thus not allowed to connect to the project. It is merely a mechanism to limit access to the front-end interface of the protocols, as opposed to blocking smart contracts. The project’s website is down but many joked that there was now a mechanism to stop other addresses from selling tokens on Ethereum by sending ETH there via Tornado Cash. The Tornado Cash incident has raised important questions regarding how the decentralized nature of DeFi initiatives and a country’s obligation to follow the law may coexist. Although some users even changed the ava to the Tornado Cash logo to demonstrate their support for the campaign, the crypto community on Twitter believes that the US has been too aggressive in its prohibition. sassal.eth now blocked from using the official Aave front-end because someone sent 0.1 ETH to my address via Tornado Cash 🫡 pic.twitter.com/TGc9LJajVU — sassal.eth 🦇🔊🐼 (@sassal0x) August 13, 2022 Circle Froze USDC in Tornado Cash Circle froze the USDC in Tornado Cash’s wallet, sparking a discussion about over-centralization. Maker’s stablecoin project DAI is considering removing USDC from the list of collateral assets to lessen ...
