As the cryptocurrency world continues to debate whether or not the ban of Tornado Cash was good for the ecosystem in the United States, an anonymous crypto user began transferring small amounts of ether from one of the 44 sanctioned Tornado Cash addresses to celebrities and prominent crypto figures in a bid to protest against the sanction.
The actions by this crypto user, which many are calling a troll, ultimately implicate these well-known figures in the society in potential regulatory troubles, as their wallets have now interacted with one of the wallet addresses of Tornado Cash, which the Office of Foreign Assets Control (OFAC), a watchdog agency tasked with preventing sanctions violations, have blacklisted.
Affected wallets include those controlled by Coinbase CEO Brian Armstrong, TV host Jimmy Fallon, clothing brand Puma and a wallet created for donations to Ukraine, according to Etherscan. Prominent crypto figures such as artist Beeple and more mainstream celebrities such as comedian, Dave Chappelle received ether (ETH). The crypto user has been sending 0.1ETH to these addresses.
What you should know
- Yesterday, the U.S. Treasury officials alleged that a significant number of funds flowing through the mixer were tied to criminal activities, such as North Korea’s proceeds from hacking various crypto exchanges and services.
- The idea to send 0.1 ETH to celebrity wallets appears to have originated on Twitter in a Monday post by user, @Depression2019, who has since retweeted screengrabs from the on-chain transactions.
- The gag effectively points out the absurdity of such sanctions for users receiving funds from blacklisted addresses that they have no power to decline. The open nature of crypto is designed to cut out intermediaries, unlike the traditional financial sector that would use banks and other financial institutions to act as gatekeepers against such transactions.
- Because Tornado Cash is a sanctioned entity, U.S.-based crypto businesses are now under a legal obligation to block incoming transactions from its wallets. OFAC rules mandate that U.S. persons freeze any transactions or funds sent from Tornado Cash.
Unfortunately, it isn’t possible to block an incoming transfer on-chain, so exchanges and other parties would most likely have to block the addresses, and this will also affect those who are innocent of not dealing on the platform as they can be stained by literally anyone. This may not be easy for celebrities and businesses with public wallets that aren’t operated by an exchange or similar type of business.
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The Top Anonymous Bitcoin Wallets Ranked
Exodus – Anonymous wallet with a built-in exchange and NFT support. Zengo Wallet – Secure and anonymous crypto wallet using MPC cryptography instead of seed phrases. Ellipal Wallet – High-security, air-gapped wallet supporting 10,000+ digital assets.
What is tornado cash crypto? ›
Enter Tornado Cash, a program that allows deposits to, and withdrawals from, a pooled crypto fund. This breaks up direct connections between senders and receivers of crypto, allowing for greater privacy in crypto transactions.
What is the best crypto for anonymity? ›
Monero is the most popular privacy crypto, followed by ZCash and Dash.
What are anonymous coins? ›
Anonymous coins are special blockchain tokens that hide the transaction amount, sender, and receiver during the transaction process. In contrast, there are "visible coins" such as Bitcoin and Ethereum. The main anonymous currencies include Dash, Monero, and Zcash.
Which crypto wallet cannot be traced? ›
Ledger Nano X
It is a great anonymous crypto wallet to manage crypto assets. Ledger Nano X also has a LedgerLive App, which allows users to manage over 5500 coins. It is also relatively cheaper than some of the other offerings. Its limitations are that it only allows three apps' worth of storage.
Which wallet address is untraceable? ›
ELLIPAL Titan 2.0 – Top-Rated Hardware Wallet With Air-Gapped Security. ELLIPAL Titan 2.0 is one of the best anonymous crypto wallets for cold storage. This means the private keys are stored within the hardware device and never exposed to internet connections.
Is Tornado Cash illegal in us? ›
Blog / Tornado Cash: US Blacklists Crypto-Mixing Service
Tornado Cash, a virtual currency mixer, was sanctioned by the US Department of the Treasury's Office of Foreign Assets Control (OFAC) on August 8, 2022, for allowing hackers to launder USD 7 billion in cryptocurrency since 2019.
Can Tornado Cash still be used? ›
The U.S. Treasury Department's Office of Foreign Asset Control (OFAC) blacklisted Tornado Cash in August 2022, alleging it was a key tool used by malicious actors to launder money.
How much does Tornado Cash cost? ›
The price of 1 Tornado Cash currently costs $2.66.
What is the hardest crypto to trace? ›
Greenberg explains that Monero hides and tangles up transactions, making it difficult for law enforcement agencies to track the flow of money.
Monero (XMR) is the undisputed king of privacy-focused cryptocurrencies. Launched in 2014, it has established itself as the most private, secure and untraceable digital currency available. Monero's advanced privacy features make it virtually impossible to trace transactions or connect them to individual users.
Which coin is not traceable? ›
Because every transaction is private, Monero cannot be traced. This makes it a true, fungible currency. Merchants and individuals accepting Monero do not need to worry about blacklisted or tainted coins.
What is mimblewimble? ›
Mimblewimble is an innovative blockchain protocol that enhances transactional privacy and scalability. Themed after the Harry Potter series, the name Mimblewimble refers to a spell that prevents the target from revealing specific information, which aptly describes the protocol's functionality.
What is the longest sobriety chip? ›
Various colors are assigned to various lengths of sobriety. Typically, A.A. chips include: white to start or renew a commitment to sobriety; yellow for 30 days; red for 90 days; blue for six months; green for nine months; and a bronze chip for one or more years.
What does an AA chip look like? ›
AA chips, or “sobriety tokens,” are small, round-shaped tokens given to members of a 12-step program after a certain number of months of sobriety. Sobriety tokens often mark the impressive achievements of people in sobriety and recovery.
What crypto wallet does not need ID? ›
Zengo. Zengo is a great crypto wallet and exchange that offers users top-level security and privacy. Its unique keyless security system allows for anonymous and secure storage of cryptocurrencies. With Zengo, users can buy crypto anonymously, i.e., without performing KYC.
Which crypto is least traceable? ›
Unlike traditional cryptocurrencies, Monero uses ring signatures, stealth addresses, and confidential transactions to obfuscate the sender, recipient, and transaction amount. This means that transactions made with Monero are virtually untraceable, making it difficult for anyone to uncover your financial activities.
How do I buy crypto completely anonymously? ›
How to buy Bitcoin anonymously with VPN?
- Use cash or a prepaid debit card to purchase Bitcoin from an ATM. ...
- Consider using a peer-to-peer exchange like LocalBitcoins or Paxful. ...
- Use a decentralized exchange like Bisq. ...
- Mix and tumble your coins. ...
- Consider using the Tor browser or a reliable VPN like AstrillVPN.
