dYdX blocking user accounts linked to Tornado Cash

Derivatives protocol dYdX has blocked user accounts that previously interacted with Tornado Cash, in line with new US sanctions.

dYdX added in a blog post that it is working with a “compliance vendor” that flagged certain accounts that had received funds from the Tornado Cash app.

Tornado Cash, a privacy and transaction mixing service on Ethereum, has been in the spotlight in recent days after the protocol was sanctioned by the US Treasury.

The exchange, though, clarified that it inaccurately banned several accounts, which had to be reversed.

dYdX noted that these users hadn’t directly engaged with Tornado Cash and that they may not have known the origin of the funds transferred to them.

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