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⚖️Tornado Cash Founders Face Sanctions and Charges
The Defiant Daily
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The United States government renewed its war against the Ethereum-based coin mixer, Tornado Cash, levying charges against two of the protocol's founders. The news comes 12 months after the Treasury Department sanctioned Tornado Cash by adding its smart contracts to the Specially Design Nationals list.
EigenLayer, the pioneering Ethereum restaking protocol, attracted an impressive $160M worth of deposits in two hours after raising the limits of its pools for only the third time. The protocol boasts a $240M TVL just ten weeks after launching.
dYdX, the leading decentralized perpetuals exchange, vowed to take against would-be MEVors on its hotly-anticipated Cosmos-based appchain. The dYdX Foundation said both validators and delegates supporting extractive MEV will face repercussions once dYdX Chain is live.
And Farcaster, a decentralized social graph protocol, announced it will migrate from Ethereum to Optimism. The move comes as Optimism is pivoting to its multi-network "Superchain" roadmap.
✍️ In today’s newsletter:
- Tornado Cash founders face charges from U.S. Treasury Department
- EigenLayer absorbs $160M in two hours after raising limits
- dYdX takes a stand against MEV ahead of appchain launch
- Farcaster taps Optimism Superchain for scalability ahead of public launch
📈 Markets in last 24 hrs:
| Ticker | Value | 24h |
|---|---|---|
| BTC | $26,034 | ↙ -0.33% |
| ETH | $1,635 | ↙ -1.9% |
| S&P 500 | $4,436 | ↗ 1.1% |
| GOLD | $1,918 | ↗ 1.17% |
| Arch WEB3 | 0.75pts | ↗ +2.21% |
| ↳ FINANCE | 0.79pts | ↗ 1.77% |
| ↳ INFRA | 0.69pts | ↗ 3.01% |
| ↳ CONSUMER | 0.88pts | ↗ 2.27% |
Learn more about Arch Indices here.
🎬 WATCH
Watch our video on the explosive rise of Friend Tech. And check out our podcast with Jon Hillis , the creator of Cabin, a network protocol for remote workers.
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Regulation
DoJ Charges Tornado Cash Founders with Money Laundering and Sanctions Violations
TLDR Two of Tornado Cash's three founders face charges of money laundering and sanctions violations from the U.S. Treasury Department, carrying decades of possible prison time. The pair are accused of facilitating money laundering on behalf of North Korean cybercriminals.
SO WHAT The news comes 12 months after the U.S. Treasury took the unprecedented action of adding Tornado Cash's smart contracts, essentially raw code, to its Specially Designated Nationals list. SDN sanctions are usually reserved for organizations involved in nefarious activities condemned internationally, such as terrorism, money laundering, or arms trafficking.
READ MORE: DoJ Charges Tornado Cash Founders with Money Laundering and Sanctions Violations
Ethereum Staking
EigenLayer Pulls In $160M Of Deposits Within Two Hours
TLDR ETH stakers deposited $160M onto the Eigen Layer restaking protocol in less than two hours after the hotly-anticipated project raised its pool limits yesterday.
SO WHAT EigenLayer now commands around $240m worth of Ether, signaling the mainstream popularity of restaking within web3. However, prominent researchers, including Vitalik Buterin, have warned against recklessly financializing Ethereum's consensus layer.
READ MORE: EigenLayer Pulls In $160M Of Deposits Within Two Hours
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DeFi
dYdX Declares War On MEV Ahead Of Appchain Migration
TLDR The dYdX Foundation said its community is concocting measures disincentivizing validators and governance delegates from supporting extractive MEV on its forthcoming Layer 1 appchain.
SO WHAT The news comes the dYdX is preparing to migrate the DEX from the Ethereum mainnet to a designated Cosmos-based Layer 1. dYdX is the top decentralized DEX, beating out its two closest rivals' combined volume by double over the past 24 hours.
READ MORE: dYdX Declares War On MEV Ahead Of Appchain Migration
Layer 2
Farcaster To Migrate From Ethereum To Optimism Superchain
TLDR Farcaster, a decentralized social networking protocol, is the latest Ethereum protocol to announce a migration to Layer 2. Farcaster will move to the Optimism mainnet, with team noted many of its partners are building on OP Stack-based chains.
SO WHAT Farcaster's Layer 2 pivot comes amid bubbling interest in dApps operating in the decentralized social space following the spectacular rise of Friend Tech.
READ MORE: Farcaster To Migrate From Ethereum To Optimism Superchain
🔎 OUR REPORTERS ARE WATCHING
🌍 ELSEWHERE
- Balancer says $2.8M still at risk after vulnerability warning (Cointelegraph)
- Crypto VC inflows drop further as macro factors weigh on investments (CoinDesk)
- Polygon CLO challenges SEC's unregistered securities designations (The Block)
