TRON founder Justin Sun is now blocked on Aave after receiving a random gift of 0.1 Ethereum from Tornado Cash

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Apparently, sending that person some Ethereum from Tornado Cash is enough to block someone on Aave. After all, that’s exactly what just happened to Justin Sun, the CEO of the popular blockchain-based operating system TRON.

I’m officially blocked from @AaveAave because someone happened to send me 0.1 eth from @TornadoCash. @StaniKulechov pic.twitter.com/tNXNLNYZha

— HE Justin Sun🌞🇬🇩 (@justinsuntron) August 13, 2022

In a tweet posted moments ago, Sun has announced that his Aave address has now been suspended after someone accidentally gifted him 0.1 Ethereum from Tornado Cash.

As a refresher, Aave is a decentralized lending protocol that allows users to lend or borrow cryptocurrencies. Here, users deposit digital assets into designated liquidity pools from which funds are lent, offering liquidity providers a handsome return on their contributions based on the amount of borrowing occurring on the platform at any given time. Aave loans are typically overcollateralised.

Tornado Cash is a blockchain protocol that allows users to send and receive cryptocurrencies anonymously. It does this by mixing Ethereum coins with other tokens to make the origin of these transactions virtually untraceable.

So why is Aave imposing sweeping bans on Tornado Cash-related transactions? Well, the protocol was recently approved by the US Treasury Department’s Office of Foreign Assets Control (OFAC), which cited its use by the North Korean hacker group Lazarus. Tornado Cash was also reportedly used to launder $103.8 million as a result of Harmony Bridge and Nomad Token Bridge hacks.

After Tornado Cash was sanctioned by OFAC, the protocol’s community Discord server as well as the native website were taken offline due to reported arrests of the main developer in the Netherlands.

Source: https://coinmarketcap.com/currencies/torn/

Due to these developments, the price of TORN – an ERC-20 token that serves as a native coin in the Tornado Cash ecosystem – has plummeted. In fact, the coin’s price has dropped another 14 percent in the past 24 hours alone. The coin is currently trading at $12.30. For reference, TORN was trading at a price of $28 just a week ago.

This brings us to the heart of the matter. A blanket ban from Aave on everything related to Tornado Cash smacks of high-handedness, especially since such policies can result in the injury of intermediaries unrelated to the ongoing Tornado Cash chaos. Such self-importance can shake confidence in the entire crypto sphere.

We’ll update this post as we hear more from Aave on their policies regarding Tornado Cash transfers.

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