The sanctioning of popular cryptocurrency mixer Tornado Cash by the United States Treasury Department continues to cause confusion in the crypto community.
This is because the OpenSea NFT buying and selling platform is starting to ban the wallets of users who have interacted with Tornado Cash in any way. According to reports shared on Twitter, OpenSea claims that these accounts are in violation of the company's terms of service. However, the company does not cite US sanctions against the cryptocurrency mixer as the reason.
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OpenSea bans addresses that have interacted with Tornado Cash
User John Doe published the email he receives from OpenSea informing him that his account has been banned. In the text, the NFTs platform says that the user has lost access to his OpenSea account. He further stated that all of the user's NFT collections have been removed from the platform:
“Hello, your wallet address account has been blocked because it violates our terms of service. This means you no longer have access to your OpenSea account. Your collections and any items in those collections have been removed and cannot be discovered by others. Here you can cancel any active offers and listings you have created with OpenSea. If you believe an error has occurred, please contact our team at support.opensea.io for assistance.”
Along with a screenshot of the email, Doe wrote: “Are you serious OpenSea? Just because I used anonymous mining for Tornado Cash before?
In response, many suggested that users switch to LooksRare instead of OpenSea. Another user stated that OpenSea is not a decentralized platform. It therefore does not offer privacy to its users:
“If you want to play with shitcoins, at least use Monero. Everything else is super centralized and offers no privacy. Especially with NFTs that have to be traceable to work,” he wrote on twitter.
The sanctions provoked stormy reactions
The US approved sanctions on Tornado Cash on Monday. As a result of the ban, all citizens of the country are prohibited from conducting operations through the service.
In addition, the sanctions also targeted any wallet address that used Tornado Cash. This means that addresses will not be able to make or receive transactions to and from any US-based company or person.
The next day mixer co-founder Roman Semenov was fired from GitHub. Additionally, USDC stablecoin issuer Circle has frozen funds from wallets associated with Tornado Cash.
After that, anonymous decided to "troll" celebrities and well-known people in the crypto market. This user sent fractions of ETH to the wallets of these "celebrities" from an account linked to Tornado Cash. Due to the penalty, this may cause problems for cryptocurrency recipients.
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