Since the US Treasury Department banned Tornado Cash for its role in crypto money laundering, only $6 million has been deposited into the protocol, down 78.5% from last week, as reported by The Block Research.
Users rushed to withdraw, causing the overall trading volume to increase. $62 million was withdrawn from the protocol, reducing the amount of cryptocurrency stored in wallet addresses by 15%.
Many platforms have blocked Tornado Cash despite the controversy over the decentralized nature of the crypto sector. Circle froze 75,000 USDC belonging to Tornado users. On August 9, two major RPC providers, Infura and Alchemy, also blacklisted Tornado Cash; GitHub decided to delete accounts of who contributed to the mixer, even take all of their repositories on the platform down. The derivatives protocol dYdX, then on August 11, confirmed to have blocked accounts related to Tornado Cash.
To make things even more confusing, someone trolled crypto celebs by sending ETH from Tornado to their wallets, including Ethereum founder Vitalik Buterin and wallets of other major exchanges such as Binance, Kraken, Gemini, Bittrex, Bithumb, etc.
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