Vitalik Buterin, the renowned name in the crypto industry and the co-founder of Ethereum, has revealed that he donated money to Ukraine early this year via the now-approved Ethereum mixer “Tornado Cash.”
I'll out myself as someone who has used TC to donate to this exact cause.
— vitalik.eth (@VitalikButerin) August 9, 2022
Jeff Coleman, a Twitter user, requested instances of people who had donated to Ukraine via Tornado Cash in a tweet on Tuesday. Ethereum protocol called Tornado Cash is used in the crypto industry to protect users’ on-chain transaction privacy.
Donating to Ukraine is a great illustration of a legitimate desire for financial secrecy, according to Coleman.
Vitalik responded by using himself as an example. “I’ll out myself as someone who has used TC to donate to this exact cause,” he stated. Buterin further explained that he used the protocol to shield the recipient’s identity rather than his own. So, revealing oneself did not make his transaction futile.
Tornado Cash sanctioned
Notably, as TheCoinRise reported, the Office of Foreign Assets Control of the US Treasury Department sanctioned Tornado Cash on Monday. According to the department, the technique has been used to launder more than $7 billion in illicit funds since 2019.
Despite Tornado’s evident use in several hacks like the Harmony exploit, several big names in the crypto sector, such as Circle CEO Jeremy Allaire, have argued that the department’s decision sets a bad example for financial privacy and security in the blockchain industry.
It is believed that Tornado Cash is associated with Lazarus Group, a hacker organization supported by the Democratic People’s Republic of Korea (DPRK), which handled the attack that resulted in the loss of $455 million in cryptocurrency.
At least $7.8 million from the $190 million Nomad was laundered through the Tornado Cash mixer earlier this month after being used in the Harmony Bridge attack.
The US Department of Treasury has already imposed sanctions on a number of other mixers. Blender.io, a cryptocurrency mixer with North Korean roots, was penalized for money laundering in May this year.