Will tether blacklist tornado cash?

Tether Holdings Limited, the issuer of the world’s largest stablecoin, USDT, clarified in a blog published Wednesday that it will not “unilaterally” blacklist blockchain addresses tied to the sanctioned cryptocurrency mixer Tornado Cash. The move has been hailed by some in crypto as a brave stance against regulatory capture.

What is tornado cash and how does it work?

With that, the majority of the blocks over the past day were delivered by relays that screened out transactions associated with Tornado Cash – a service that mixes transactions to make them anonymous – to comply with OFAC after it banned Americans from using the mixing protocol.

Is tornado cash a new 'coin mixer'?

We all know that the US agencies have banned the controversial 'coin mixer' tool, Tornado Cash, last year. As per the latest report, Ameen Soleimani, one of the early architects of the Tornado Cash project, has announced the launching of a new crypto mixer, Privacy Pool, which he claims to be the successor to the above-mentioned sanctioned mixer.

What is Tether (USDT)?

Tether (USDT) is a stablecoin with a claimed value where 1 USDT equals 1 US dollar. Tether Limited, the centralized authority of USDT, has the ability to print tether and therefore is claiming to print something equivalent to US dollars. Tether is not a central bank, bank or regulated in any way by any country other than British Virgin Islands.