Aave Blocks Justin Sun’s Address Due to Tornado Cash
It seems that Aave just needs some Ethereum sent from Tornado Cash to someone to block his/her address. Exactly this has been experienced by the CEO of TRON (a well-known blockchain-based operating system), Justin Sun.
Justin Sun’s Address Terminated by Aave
The TRON CEO shared a Twitter post a few moments back and declared that his address on Aave has currently been obstructed following the gifting of 0.1 Ethereum by someone from Tornado Cash. Aave is known as a lending protocol that is decentralized and permits the customers to borrow or lend crypto assets.
The digital assets are deposited by the clients here into selected liquidity pools responsible for lending the funds, letting the liquidity providers have an attractive yield in return for their participation in the borrowing occurring at the venue at that time. The loans provided by Aave are usually over-collateralized. Tornado Cash plays the role of a blockchain-based protocol enabling the customers to receive and send crypto assets without being identified.
This is made possible through the mixing of Ethereum coins along with the rest of the tokens making it difficult to render the starting point of the transfers. Recently, the protocol was sanctioned on the behalf of the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department, referring to its utilization by Lazarus (a hacker group based in North Korea) for money laundering of up to $103.8M as a consequence of Nomad Token Bridge and Harmony Bridge hacks.
Tornado Cash Taken Offline
Following the sanctioning of Tornado Cash by OFAC, the native website of the protocol as well as its community’s Discord server was taken offline during the reports mentioning that the lead developer of the platform has been caught in the Netherlands. In the background of the respective developments, the ERC-20-based token TRON – which works as the local coin in the ecosystem of Tornado Cash – has witnessed a collapse in its price.
The token is at the moment trading at nearly $12.30. Only a week ago it was trading around $28. An outright prohibition was placed by Aave on anything dealing with Tornado Cash in this respect. However, the respective strategy might have some severe consequences by harming those mediators that had no relationship with the present mess around Tornado Cash. As a result, the whole crypto community may get hurt.
