Popular decentralized derivatives platform dYdX announcement to follow the US sanctions imposed on Tornado Cash platform.
Tornado Cash is an Ethereum blockchain-based crypto mixing platform, recently banned by the US Treasury official because it failed to prohibit illegal crypto fund transactions on its platform even though the platform introduced a special protocol to control illegal activities. In the last year, the Tornado Cash platform was used by bad actors to facilitate approximately $1 billion worth of funds.
On 10 August, the popular decentralized crypto trading platform dYdX announced that it follows the restrictions imposed on the crypto mixing platform Tornado Cash by the US government.
“dYdX is committed to providing the best product to its users, as well as providing a product that can be reliably used by the global community.”
Further dYdX confirmed that it will block all the accounts associated with illegal activities like Ransomware attacks linked to crypto transactions or money laundering, malware attack, or any kind of illegal dealing like sex abuse material.
The exchange also said that it banned the accounts, which were directly linked with the funds held on Tornado Cash and those accounts were not affected which were linked indirectly with Tornado.
Team also confirmed that they mistakenly blocked some dYdX user accounts which were not involved in illegal activities with Tornado Cash and later they unbanned all such types of accounts.
Through the blog post, the dYdX team also urged the customers to report their problems associated with the Tornado Cash ban, in those cases if they were mistakenly blocked by the platform.
However such decisions are taken to make the crypto industry more transparent without any Involvement of bad actors but still few dominant crypto proponents criticized such decisions of the US government.
In particular, Vitalik Buterin, co-founder of Ethereum blockchain, said that in the past he used the Tornado Cash platform to hide the details of beneficiaries, not his own when he donated funds to Ukraine during the Russia vs Ukraine conflict.