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Kraken Exchange To Freeze Funds Coming From Tornado Cash

It’s been just reported that the crypto exchange Kraken will freeze funds coming from Tornado Cash. Check out more details about the issue below.

Kraken exchange to freeze funds coming from Tornado Cash

Kraken CEO Jesse Powell said not too long ago that the US government’s decision to sanction Tornado Cash leaves the crypto exchange with no option but to block funds coming in from the coin mixing service.

Just to refresh your memory, earlier this month, the U.S. Treasury Department banned Americans from using of Tornado Cash.

It’s also important to note the fact that they cited national security concerns as the agency claims the protocol has been used to launder $7 billion worth of crypto assets since 2019.

As the online publication the Daily Hodl notes, in a new interview with Bloomberg, the head of the crypto exchange says that there are still a lot of people who use Tornado Cash for legitimate reasons but to comply with the government order, Kraken will have to freeze funds that come from the crypto tumbler.

“We would prohibit withdrawals to any addresses associated with Tornado, and we would likely freeze any funds coming in from our Tornado address.”

Powell also explained that the case of Tornado Cash will likely be challenged for its validity.

“I think we’ll see a constitutional challenge against Tornado Cash, and I hope that people get their right to publish code and that code turns out to be speech and money turns out to be speech and everyone has a right to spend their money however they want.”

He also made sure to talk about the restrictions that the government imposes on crypto.

“It’s a tough challenge now. It’s why we have these conversations going on all the time. We are really trying to educate regulators and law enforcement and the lawmakers about the real risks here and about the real need for financial privacy and who cryptocurrency really serves.”

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