DeFi Platform Aave Blocks Addresses Linked To Tornado Cash

Updated: 14 August 2022

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Tornado Cash is under fire lately as more DeFi protocols have started blocking wallets connected to the smart contract. Now, Aave has joined Balance and Uniswap

Users of the platform usually get a message that their addresses are not allowed to connect to the project because it s related to “blocked activity.”

The block was initiated to prevent frequent access to the front-end interface of the protocol. This is different from completely blocking smart contracts.

Tornado Cash Comes Under Severe Criticism

The website of the project is currently down, and many people have opined that the system can prevent other addresses from selling tokens on Ethereum.

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The Tornado Cash has come under severe criticism in the past few weeks. There have been a lot of questions about the decentralized nature of DeFi initiatives. Some users have tried to support the campaign by changing the ava to the Tornado Cash logo. The crypto community on Twitter has voiced frustration regarding the aggressive nature of its prohibition.

Circle Has Also Blocked USDC In Tornado Cash

Circle has also been one of the DeFi platforms that have blocked access to the Tornado Cash mechanism. It recently froze the USDC in Tornado Cash’s wallet, which has ignited a discussion on over-centralization. Also, the stablecoin project DAI is looking to remove USDC from the list of collateral assets to reduce the risk of payment freezing.

The incident became more serious when Dutch authorities seized a Tornado Cash developer on August 12. However, it’s not clear whether there will be legal repercussions for the user or developer.

A lot of decentralized applications (dApps) on the Ethereum network have implemented code changes to regain access to addresses that were sanctioned. These protocols include Balance, Oasis, Ren, Uniswap, and Aave. If the situation about Tornado Cash continues, more dApps could join the train and block related addresses.

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