![TornadoCashusesChainalysisContractWebsite.jpg](https://images.hive.blog/DQmcsX6HYjNQJr8trHMbGgeLb79j7BAPUmWQEs5XpLaAmsm/Tornado-Cash-uses-Chainalysis-Contract-Website.jpg)[<sup>(Source)</sup>](https://www.cryptotimes.io/tornado-cash-uses-chainalysis-to-block-ofac-sanctioned-addresses/)


#### Evening

Yesterday, Tornado Cash announced that it is using blockchain tracking firm Chainalysis Oracle to prevent the addresses blacklisted by U.S. Office of Foreign Assets Control or OFAC from accessing their service.

Tornado Cash is a decentralized Ethereum based protocol allowing users to carryout transactions privately. Simply speaking all deposits go into the Tornado Cash protocol, mixed and withdrawn to their new destination addresses, thus breaking the link between depositor and destination addresses. Tornado Cash's privacy services are ideal for entities looking transaction privacy/anonymity.

![wdj.png](https://images.hive.blog/DQmfRHZZ7SqoZSK31wM6GEDgB7MLRZbzLkcRXmTJLFme2bq/wdj.png)

Though the announcement came on Friday, but back a few months ago Coindesk reported that Tornado Cash is complying with OFAC to block the backlisted wallet addresses from accessing the service.

 
Chainalysis protocol scans various blockchains like Ethereum, Binance Smart Chain, Polygon and Avalanche etc. for activity on addresses blacklisted by various government entities for involvement in illicit activities.

So, Tornado Cash is using Chainalysis as a gatekeeper to filter out suspicious addresses from using their privacy services. But there are still chances ominous entities can evade Chainalysis scanning by using some other accounts or services that don't use Chainalysis oracle.

Tornado Cash clarification came as the suspicion is mounting among crypto community and regulators, regarding the use of the privacy service by hackers to lauder the stolen crypto funds. Back in February, Wormhole hackers tried using Tornado Cash to launder $375 million stolen funds. And now the recent Ronin Bridge hack with $622 million in stolen funds out of which $178 million have been laundered so far, allegedly using coin mixers like Tornado Cash. Recently, US Treasury department have connected Ronin Bridge hack to North Korea's Lazarus Group and backlisted the associated wallet address.

In his defense, Tornado Cash co-founder Roman Semenov [already clarified to Bloomberg](https://www.bloomberg.com/news/articles/2022-03-10/crypto-obfuscator-tornado-says-sanctions-cant-affect-smart-contracts?sref=f8taTPHn) that Chainalysis oracle only blocks access to Tornado Cash dapp with the underlaying smart contract is still open source. Semenov stated that the Tornado Cash devs have the same access to protocol smart contract as the common users and can't do much about it.

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