Justin Sun is now facing a new issue with the decentralized protocol called Aave. Aave is dedicated to cryptocurrency-related borrowing, lending, and RWA (real world trading) options. On the other hand, Tornado Cash is a cryptocurrency mixer on the Ethereum blockchain that is recently facing issues and pressure from the latest government sanctions.
For the time being, all operations on the Tornado Cash have been suspended until further notice. On the other hand, Dutch police also made some arrests related to Tornado Cash on 10th August.
The financial regulators have charged the management of TC with money laundering and assisting criminal users in hiding their transaction trails. To this end, the Dutch Fiscal Information and Investigation force has apprehended several developers working with Tornado Cash.
After the Fall of Tornado Cash, Many DeFi Protocols are Making Preparations to Become Compliant
Following the crash of Tornado Cash, there are reportedly several DeFi protocols that are changing gears and preparing to become compliant with the regulatory guidelines. There is an increasing worry among the DeFi protocols to dissociate with any relation or connection with the Tornado Cash platform.
US authorities have also issued a warning claiming that it is possible to conduct several arrests in the matter of Tornado Cash investigation and prosecution process.
Amidst the chaos and panic, Justin Sun took to Twitter to post the latest updates about his entanglement with Aave. His latest tweet reads that he was blocked from using Tornado Cash since someone sent him 0.1 ETH from a Tornado Cash account. It seems that Sun is waving any connection or knowledge about this matter.
Jerry Brito is connected with Coin Center, working as an executive director at the non-profit organization. He recently claimed that the case with Tornado Cash is a highly anticipated move. He further claimed that the government intervention with Tornado Cash is equivalent to obstructing the constitutional rights of the American Citizens.
He claimed that anyone who is or has been in contact with the outlawed platform is going to become an easy target for the regulators.
To this end, there are several celebrities and other important personalities who have received 0.1 ETH from the Tornado Cash account. As per the law, American citizens are prohibited from using the Tornado Cash platform.
However, technically it is still possible for anyone to send money anywhere they want using TC. Meanwhile, US regulators are also doubling down on all cryptocurrency mixers and have claimed that they are prepared to take legal action.