Erik Voorhees makerdao
Crypto winter

Erik Voorhees urges MakerDAO community to leave USDC positions after Tornado Cash sanctions

CEO and founder of Shapeshift Erik Voorhees has recommended that the MakerDAO community take precautionary measures after the U.S. Treasury sanctioned Tornado Cash.

Specifically, Voorhees advised MakerDAO users to withdraw their USDC collateral and convert the funds into another stablecoin. But he stopped short of advocating a more censorship-resistant choice.

On Aug. 8, the U.S. Treasury issued a press release stating that crypto blender Tornado Cash had been sanctioned for its role in laundering more than $7 billion worth of illicit crypto funds since 2019. Treasury Under Secretary for Terrorism and Financial Intelligence Brian E. Nelson said:

Despite public assurances to the contrary, Tornado Cash has repeatedly failed to impose effective controls designed to prevent it from regularly laundering funds for malicious cyber actors and without basic measures to address its risks.

The incident led to discussions about government overreach and alternatives to centralized stablecoins.

The end of Tornado Cash

The Tornado Cash website is offline, its developers were booted from GitHub and Circle blacklisted USDC addresses belonging to the organization as a result of the sanctions.

Several months earlier, Circle CEO Jeremy Allaire dismissed claims that the company could freeze USDC accounts for any reason as FUD. He further countered by suggesting that entities operating within the law have nothing to fear.

Coin Center issued a statement on the matter, saying that sanctions against a tool, rather than a person or entity with agency, are a blow to people who wish to preserve their privacy, “including for entirely legal and personal reasons.”

This seems more like sanctioning a tool that is neutral in character and can be used for good or ill like any other technology.

This point has been widely supported by members of the crypto community, who see sanctions as an attack on personal sovereignty.

Big Brother is watching

Bankless founder Ryan Adamsintervened, calling the U.S. Treasury’s actions “the first shot in the big brother assault on crypto.”

In a later tweet, Adam also asked the question, where will this end? Suggesting that Uniswap could be next, then Ethereum – further insinuating tiptoeing to totalitarianism.

If the software isn’t secure, then the word isn’t.

In response to the USDC’s censorship, a researcher at the NEAR Protocol DeFi Proximity platform, @resdegena proposed the development of a new decentralized stablecoin free of government guidelines.

Resdegen considers Reflexer’s Rai and Liquidity’s LUSD to be 100 percent decentralized, but both are collateralized, which is a disadvantage in terms of scalability. Resdegen suggested developing a new project that would be algorithmically indexed using BTC or ETH derivative contracts.


Article written by:

Laeti Marison, also known as SatoshiBelle, is a multifaceted professional with a passion for community management, content creation, and digital marketing. With a diverse background in various roles, Laeti has consistently demonstrated her expertise and dedication in the field. Recognizing her potential, Laeti then took on the responsibilities of a Project and Community Manager at Magna Numeris and Cartam from November 2018 to March 2021. In this role, she showcased her ability to successfully lead projects and foster strong relationships within the community. Currently, Laeti serves as an SEO content writer, Digital Marketing Manager, and co-founder at magazine, starting from February 2022 till now. Through her expertise in digital marketing and her passion for the crypto industry, she has contributed to the success of the magazine, ensuring its content remains relevant, engaging, and informative.

Join the discussion

  1. Pingback: Why Ethermine the largest Ethereum miner stopped processing altcoins transactions? - Trending Crypto News

  2. Pingback: USDC (US Dollar Coin) is the first stablecoin added to Robinhood crypto lists - Trending Crypto News

  3. Pingback: MakerDAO Endgame : A new redesign implemented ! - Trending Crypto News

  4. Pingback: MakerDAO Endgame : A new redesign implemented ! – CryptoBitcoins News

Leave a Reply

Your email address will not be published.

back to top