• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

TronWeekly

Crypto World News

  • Home
  • Education
    • Best TRON Wallets
    • Beginner’s guide to TRON
  • Opinion
    • Tron Tokens
    • Market Analysis
  • Industry
    • Tron Exchange
    • Project Review
  • Press Release
  • Advertise
  • About us
    • The Team
    • Editorial Policy
    • Write for us
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • Contact
You are here: Home / News / dYdX Lift Bans On Accounts “Incorrectly Blocked” During Tornado Outage
dYdX Lift Bans On Accounts "Incorrectly Blocked" During Tornado Outage

dYdX Lift Bans On Accounts “Incorrectly Blocked” During Tornado Outage

August 11, 2022 by Lipika Deka

Leading decentralized exchange dYdX released a post acknowledging in the early hours of 11 August that it blocked user accounts linked to the sanctioned Tornado cash. This however led to several other unrelated accounts being banned as well, triggering an outcry.

The DEX then took to Twitter to address the issue,

“We were recently made aware of an issue related to Tornado that was causing many wallet addresses to be blocked from accessing our exchange. We have rectified this and you can read the full announcement here.”

In the blog post, dYdX said that with the help of compliance vendors, it has scanned and flagged accounts associated with or received funds from the Tornado Cash app, in line with the US Sanction list by the U.S. Treasury’s OFAC.

This however led to a significant increase in accounts flagged by its compliance provider that were subsequently blocked by dYdX.

In response, dYdX wrote, “Many accounts were blocked because a certain portion of the wallet’s funds [in many cases, even immaterial amounts] were associated at some time with Tornado Cash, which was recently added to the sanctions list by the U.S.”

dYdX Mistakenly Banned Unrelated Accounts

Later, the exchange explained that it has lifted restrictions on the incorrectly banned accounts while noting that these users were never directly engaged with Tornado Cash and that they may not have known the origin of the funds transferred to them.

“We have made adjustments, within the limits of our compliance policies, that have unbanned certain accounts and we will continue to make efforts to limit flagging and track this issue moving forward,” the trading platform added.

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

On August 8, the ethereum mixer, and all the crypto addresses related to the platform, were officially banned by the U.S. Treasury Department’s Office of Foreign Asset Control [OFAC].

The move came after the privacy-enhancing app was allegedly used by the North Korean hacking group Lazarus to launder stolen funds.

Following the ban, the internet hosting service for software and open source code development, Github, deleted some of the Tornado Cash commits and suspended the project’s contributors.

Filed Under: News Tagged With: DYDX, Tornado Cash, US sanctions

Primary Sidebar

Recent Posts

  • Solana Price Eyes $300 as Derivatives Metrics Turn Bullish July 4, 2025
  • XRP Price at a Tipping Point: Key Levels and Senate Hearing Could Trigger a Shift July 4, 2025
  • China’s Tech Giants Push for Yuan Stablecoin in Hong Kong to Challenge USDT July 4, 2025
  • Sui Network Surges 54% in Developer Growth, Emerges as Solana’s TopRival July 4, 2025
  • Dogecoin Price Prediction: Breakout Confirmed As Bulls Target Explosive Rally to $0.26 July 4, 2025

Footer

News

  • Altcoin News
  • Bitcoin News
  • Blockchain
  • Tron News
  • World

Digest

  • Meet the Founder
  • Price Winning Article
  • DeFi
  • Cyber Security
  • Crypto Scam

Industry

  • Project Review
  • Technology
  • Fintech
  • Tron Exchange
  • New in Town

Tron Universe

  • Event and Tron Parties
  • New in Town
  • Tron Tokens

Follow Us

Subscribe US

Copyright © 2025 · Tron Weekly. All Rights Reserved. NOTE: Tron Weekly is an independent crypto news site that adheres to the strict journalism policy anchored on transparency, trust, and objectivity, we have no affiliation with the TRON Foundation, its founder Justin Sun or any other cryptocurrency firm.