The US Treasury sanctioned the Tornado Cash service, which enables anonymous sending of digital currencies, in early August. Washington has proof that this site was utilized for money laundering.
Since the levy of sanctions against Tornado Cash, the capitalization of the stablecoin Tether (USDT) has increased by nearly $2 billion. This occurred after Circle, as part of its restrictive policy, blocked USDC addresses associated with Tornado Cash. 44 addresses were blacklisted.
Noncompliance with the sanctions regime can result in fines of up to $10 million. Those who violate the restrictions may face imprisonment from US authorities.
In contrast, USDC capitalization has fallen by $2 billion since the beginning of August. This Stablecoin’s supply is currently $53.422 billion, and the total value of USDT surpasses $67.571 billion.
Observers consider that investors transferred roughly $1.6 billion in reserves from USDC to USDT.
Tether team representatives have yet to issue an official statement.
The largest Stablecoin issuer has yet to respond to Tornado Cash’s inclusion on the sanctions list. Silence may indicate that the company does not intend to follow the restriction regime.
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