Tornado Cash deposits fell sharply after the US Treasury Department’s sanction.
After the sanctions against Tornado Cash, deposits decreased and the amount of money withdrawn from the protocol increased.
Decline in Tornado Cash Deposits
According to data from The Block Research, only $6 million has been invested in the protocol since the sanctions were imposed. This marks a 78.5% decrease compared to the previous week.
However, users began to withdraw their funds from the protocol at great speed. The amount withdrawn from the protocol since the sanction decision has reached 62 million dollars. Similarly, the amount of crypto money held in addresses decreased by 15%. In addition, in the first three hours immediately after the sanction, there was an outflow of 14.7 million dollars.
Another consequence of the sanctions was on the USDC side. Circle announced that it had frozen $75,000 USDC in Tornado Cash addresses and limited access to the protocol. A similar move came from the decentralized exchange dYdX today.
Following these developments, a user sent small amounts of Ethereum to names such as Logan Paul, Jimmy Fallon, Randi Zuckerberg and NBA star Shaq in protest from a Tornado Cash wallet that was subject to sanctions.
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