Chainalysis: Tornado Cash Inflows Drop 68% in 30 Days After Sanctions

According to the Chainalysis research report, the darknet market Hydra, the cryptocurrency exchange Garantex, and the decentralized currency mixing application Tornado Cash, sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in 2022, will perform cryptocurrency funds within 60 days before and after the designation It's like a cloud of mud. Among them, Hydra’s capital inflows immediately returned to zero after being sanctioned, while Garantex, headquartered in Russia, had an average monthly inflow of US$620.8 million in the four months before April when it was sanctioned. After the sanctions, Garantex’s Inflows have increased significantly, averaging about $1.3 billion per month through October.” Tornado Cash saw a significant drop in inflows after the sanction, dropping 68% in 30 days. Because it runs on the smart contract, only the front-end website is closed, so it does not stop running completely.