$75,000 USDC reportedly frozen because of the Tornado Cash crackdown

[mu_enrico]

Imagine if you have some USDC frozen just because it was connected to Tornado Cash, a cryptocurrency tumbler/mixing service on ETH chain. You might not be involved in the criminal activity, but it doesn't matter! They freeze your funds along with the bad guys anyway.

The Treasury Department’s crackdown on Tornado Cash was meant to stop criminals. But a lot of ordinary crypto investors with honest intentions are now at risk.

"Every U.S. person is going to have to be very careful about transacting with Tornado Cash," said Ari Redbord, head of legal and government affairs at research firm TRM Labs, in an interview. "Remember, sanctions are strict liability. Intent does not matter."

Source.

I don't think what the government does is ethical, but people should be aware that sending money to the tumble/mixing services is high risk, and the US isn't happy with the service because it's used to launder money.

[TomPluz]

There is a big risk when using a mixing service...and it is because you are pronounced guilty even before you can present any evidence as the government is looking at mixing as a way to hide something and many people think that if you are hiding then you must be involve with something illegal. You may not agree with their way of thinking but that is the reality that we are in. I myself don't use any mixing service in sending my coins and tokens...but anyway they are insignificant in value so there is no need for me.

[MrSpasybo]

Anonymity is one of the advantages of crypto, but now people want to give it up. This will be an important event for us to know the views of the law enforcement agencies and user expectations of the crypto market. I'm not advocating banning this app, it's really effective to get crypto out of government regulation.

[Hope4life]

Anonymity is one of the advantages of crypto, but now people want to give it up. This will be an important event for us to know the views of the law enforcement agencies and user expectations of the crypto market. I'm not advocating banning this app, it's really effective to get crypto out of government regulation.

Yes, that's what happened, I think with the fast development of cryptocurrencies and being anonymous and decentralized attracting lot of people to do criminal transactions and in the end the government will regulate it. It will be safer to store funds in your own private wallet and trade on platforms like dex than using a mixer.