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Tornado Cash Monthly Users Fall by Over 50% Post-US Sanctions

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Tornado Cash is experiencing a significant drop in activity following the sanctions by the U.S. Treasury. The number of unique users and weekly deposits and withdrawals have both fallen.

Tornado Cash is taking a tumble in terms of activity as a result of the sanctions imposed by the United States Treasury. Data from Dune shows a significant drop in unique users per week since the announcement of the sanctions in August 2022, with September seeing unique users well below 100.

Unique users per week: Dune

The sanctions have effectively taken Tornado Cash from all-time highs in terms of unique users to what could be lows that could be permanent. Monthly users have also fallen by over 50%, from over 2,600 in July to under 1,300 the month after. That represents a 52% drop in users.

The weekly deposits and withdrawals have also taken a significant hit, to the point where they are less than a tenth of what they were in the early parts of the year. In the last week of September, weekly deposits and withdrawals amounted to $3.6 million and $5 million, respectively.

Deposit and withdrawals per week: Dune

The U.S. Treasury imposed sanctions on the popular crypto mixer in August 2022, pointing to the fact that the service had been used by the North Korean state-sponsored hacking group Lazarus Group. The Treasury had said that Tornado Cash had been used to launder more than $7 billion since its creation.

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