Ethereum's notorious mixing service Tornado Cash is now blacklisting sanctioned addresses to comply with the Office of Foreign Assets Control (OFAC) regulatory requirements. The team behind the project wrote on Twitter it will use an oracle made by Chainalysis to block OFAC sanctioned addresses from accessing the decentralized application.
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"Maintaining financial privacy is essential to preserving our freedom, however, it should not come at the cost of non-compliance."
The news comes shortly after the US Treasury linked North Korean hackers known as the Lazarus Group to a crypto address that was part of a massive $600+ million hack of Axie Infinity, a blockchain game made by Sky Mavis. The US government particularly listed an ETH address, which Sky Mavis named as the Ronin attacker in late March.
According to a blockchain forensic firm Chainalysis, Lazarus's address was involved in the Ronin hack, having received 173,600 ETH and 25.5 million in the USDC stablecoin from the Ronin Bridge smart contract during the attack, the firm revealed on Twitter.
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