The cryptocurrency mixer had a TVL of approximately $445 million at the end of July.
Tornado Cash’s TVL saw a boost in July due to renewed interest in decentralized finance (DeFi) and certain areas of the cryptocurrency industry.
Tornado Cash is a platform used to obfuscate crypto asset transfers. The platform’s native TORN asset increased 49% in total value locked in July. On July 1, it had a TVL of around $297.13 million, rising to $445.37 million on July 31.
Announced in December 2020 and launched in February 2021, Tornado Cash is a service that helps cryptocurrency owners protect their anonymity by encoding information tracks on the Blockchain.
Through this decentralized solution, around 40,000 users have been able to hide transactions.
What Contributed to the TVL Increase?
TVL spiked in July due to an increase in value locked across all blockchains where the protocol is implemented. There was an increase in TVL on Ethereum, Binance Smart Chain, Arbitrum, Avalanche, Gnosis, and Optimism within the same period.
After raising $148.24 million, Tornado Cash had the most TVL compared to Quickswap, DefiChain DEX, Benqi, Solend, BiSwap, and Marinade Finance.
TORN Price Reaction
TORN opened on July 1, trading at $20.73, hit a monthly high of $28.38, tested a monthly low of $19.56, and closed the month at $25.09.
Overall, there was a 21% increase between the opening and closing price of TORN in July.
And… Sanctions still Haunting Tornado Cash
Last August 8, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned virtual currency mixer Tornado Cash, presumably because it has been used to launder more than $7 billion worth of virtual currency since its creation in 2019.
The alleged laundered money includes over $455 million stolen by the Lazarus Group, a Democratic People’s Republic of Korea (DPRK) state-sponsored hacking group sanctioned by the US in 2019, in the largest known virtual currency heist to date.
Tornado Cash was used to launder more than $96 million of malicious cyber actors’ funds derived from the June 24, 2022, Harmony Bridge Heist, and at least $7.8 million from the August 2, 2022, Nomad Heist.
As a result of the sanctions imposed by the US, all property and interests in property of Tornado Cash in the United States are blocked and must be reported to OFAC.
In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited, unless authorized by a general or specific license issued by OFAC, or exempt.
The prohibitions involve the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person, as well as the receipt of any contribution or provision of funds, goods, or services from any such person.
By Audy Castaneda
