Tether will not freeze Tornado Cash addresses! Here are the details! There is a new update about Tornado Cash. This time, it comes from Tether. On August 24th, Tether took to Twitter to announce the position they take on Tornado Cash.
About Tornado Cash
Earlier this month, the US Treasury Department’s Office of Foreign Assets Control (OFAC) officially sanctioned Tornado Cash for its involvement in facilitating laundering activity. As a result, American citizens are not allowed to interact with Tornado Cash. Since then, some firms have announced blocking accounts related to Tornado Cash, such as dYdX.
Announcement From Tether
On August 24th, Tether announced on Twitter not to freeze Tornado Cash addresses as they are waiting for more instructions. But, once Tether receives any request to freeze a wallet, they will comply with it.
Tether Holds Firm on Decision Not To Freeze Tornado Cash Addresses, Awaits Law Enforcement Instruction https://t.co/zpsI9lKLlf
— Tether (@Tether_to) August 24, 2022
Tether wrote, “No US law enforcement agency or regulator has made such a request despite our near-daily contact with US law enforcement whose requests always provide precise details.”
Tether argued that “unilaterally freezing secondary market addresses” could be disruptive and reckless, which Tether tries to avoid. Tether also added that freezing suspicious addresses without verified instructions from law enforcement can interfere with the ongoing investigations. It is important to note that Tether is a Hong Kong-based issuer. However, they are still following US regulations.
In addition to the announcement, according to a Washington Post analysis of data from Dune Analytics, Tether is not blocking any accounts related to Tornado Cash.
The announcement can hint that Tether can freeze Tornado Cash addresses once they receive instructions. It is good information for the community to be aware of any possibilities.