Tornado Cash Blacklisted, U.S. Inflation Cools to 8.5%
OFAC blacklisted crypto mixing service Tornado Cash and all of its Ethereum addresses. Meanwhile, US inflation dropped to 8.5% in July, partly due to the decrease in energy prices.
U.S. Treasury Blacklists Crypto Mixing Service Tornado Cash
The Office of Foreign Assets Control (OFAC) has blacklisted crypto mixing service Tornado Cash and all of its Ethereum addresses for allegedly facilitating the laundering of more than $7 billion worth of cryptocurrencies. [1] As a result, all Americans are prohibited from interacting with Tornado Cash or any of the Ethereum wallet addresses tied to the protocol. The service is known to be used by North Korean crypto hackers that use stolen funds to help finance the nation’s nuclear weapons program, according to OFAC.
We’ll continue to aggressively pursue actions against currency mixers laundering virtual currency for criminals. Today, @USTreasury sanctioned virtual currency mixer Tornado Cash, which has been used to launder money for a U.S.-sanctioned DPRK state-sponsored cyber hacking group.
— Secretary Antony Blinken (@SecBlinken) August 8, 2022
Tether and Circle to Support Ethereum Proof of Stake Transition
Two of the largest centralized stablecoin issuers, Tether and Circle, announced they will support Ethereum's transition to Proof-of-Stake and not a potential Proof-of-Work fork. [2] Ethereum’s Proof-of-Stake system will rely on trusted networks of validators to process transactions, eliminating the need for crypto mining hardware. [3]
U.S. Inflation Eases to 8.5% in July But Remains High
US CPI inflation dropped slightly to 8.5% in July from its 40-year peak, partly due to the decrease in energy prices. While inflation remains near the record high, crypto markets have responded positively. Bitcoin jumped 2% and Ethereum 7% after the announcement, signaling hopes of a potential cool-off. [4]
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Sources
2. Tether, Circle Pledge Support for Proof-of-Stake Ethereum
3. Stablecoin Giants Circle, Tether Back Ethereum’s ‘Merge’—A Bad Sign For Those Pushing a Hard Fork
4. US Inflation Slowed to 8.5% in July, CPI Report Shows; Bitcoin Jumps
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