Coinbase Faces $1.67 Million USDC Withdrawal to Tornado Cash

币界网报道:Coinbase has reportedly frozen over $1.67 million worth of USDC stablecoins linked to 676 Ethereum addresses that interacted with Tornado Cash, the sanctioned crypto mixing service. The exchange took action after Circle, the issuer of USDC, blacklisted these addresses in compliance with U.S. Treasury sanctions imposed on Tornado Cash in August 2022. The frozen funds represent transactions that occurred both before and after the sanctions were announced, raising concerns about the retroactive application of these measures. Blockchain analytics firm Arkham Intelligence identified the affected addresses, noting that some had only minimal interactions with Tornado Cash, such as receiving small test transactions. This incident highlights the ongoing challenges crypto businesses face in balancing regulatory compliance with user privacy, as exchanges like Coinbase must enforce sanctions while navigating the complexities of blockchain transparency. The move has sparked debate within the crypto community about the implications of centralized stablecoin issuers having the power to freeze funds, even when users may not have intentionally violated sanctions. Tornado Cash, which obscures transaction trails by mixing cryptocurrencies, was sanctioned by the U.S. government for allegedly laundering over $7 billion in virtual currency, including funds stolen by North Korean hackers.

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