Insider Shares the Reason for Tornado Cash DAO Shut Down

Last Updated:
Insider Shares the Reason for Tornado Cash DAO Shut Down
  • Tornado Cash DAO shut down because it couldn’t battle the U.S. Treasury Department and protect its contributors at the same time.
  • Tornado Cash reportedly wants to stay out of legal trouble.
  • The mixer has been under a lot of controversies in the past couple of days.

Following the shut down of Tordano Cash DAO, CryptoSlate, a news outlet, claims to have spoken directly with a Tornado Cash team member who has requested anonymity for the report that highlighted why the platform shut down Tornado Cash DAO.

According to the contributor, the DAO was shut down because they were, in his words, “all out.” He went on to say that the platform is powerless against the United States. “Better safe than sorry, unless it all calms down a bit.”

They added that the DAO had been shut down to protect its users and stay out of legal trouble. This was done since the current scenario poses a threat to all developers, not just those working inside the Tornado Cash ecosystem.

The Tornado Cash DAO went down two days ago following several social media users who reported the community debating strategies to counter penalties recently issued by the United States Treasury Department’s Office of Foreign Asset Control.

This followed several moves taken by various agencies and commercial companies in the aftermath of the United States’ announcement on Monday that they would be imposing sanctions against the infamous mixer.

Tornado Cash has had a rough couple of days following news of the arrest of the project’s co-founder in the Netherlands. Additionally, the value of the project’s governance token, Tornado Cash (TORN), has dropped by more than fifty percent against the US dollar.

Furthermore, last Monday, Roman Semenov, the co-founder of Tornado Cash, said that GitHub had suspended both his account and the accounts of Discord users.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.