The market cap of the Tether token (USDT) has increased by nearly $2 billion. Since the US Treasury has imposed sanctions on Tornado Cash, a crypto-transaction concealment service.
Office of Foreign Assets Control Americans banned from using Tornado Cash on August 8, blacklisting 44 USD Coin (USDC) and Ether (ETH) wallets linked to services on the Specially Designated Nationals and Persons (SDNs) list.
OFAC claims that Tornado Cash is used by individuals and organized crime to launder money. Over $7 billion worth of cryptocurrency since 2019 and also laundering money for North Korean hacker group Lazarus Group.
USDC stablecoin issuer Circle has also frozen assets linked to 44 OFAC-flagged wallets.
Penalties for non-compliance range from a fine of $50,000 to $10,000,000 and imprisonment of 10 to 30 years, with Circle withholding 75,000 USDC associated with the account in question in an effort to fully comply with the Treasury ruling.
Interestingly, USDC’s market capitalization is down about $2 billion from its peak of around $55 billion last month. Down to a present value of about $53 billion. The decline in USDC was noticed by market participants. cryptocurrency Many people on social media There is a correlation between a decline in USDC’s market capitalization and an increase in USDT’s market capitalization.
Paolo Ardoino, Chief Technology Officer at Tether and Bitfinex, also mocked USDC-USDT on Twitter, with both USDC and USDT being able to withhold funds through Ethereum’s smart contract functionality.
Why no one is talking about it? pic.twitter.com/SEAChZZeLO
— Paolo Ardoino
(@paoloardoino) August 14, 2022
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