According to BlockBeats, on August 16, crypto research Center Coin Center published a blog post saying that the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) sanctions on Tornado Cash may be procedually and legally flawed. Coin Center said, "We believe that OFAC overstepped its legal authority by adding certain Tornado Cash smart contract addresses to the SDN list, which may have violated due process and constitutional rights." According to Coin Center, smart contracts cannot be sanctionable entities, and such a standard would be dangerous for coders around the world. "This action sends a signal, and indeed seems designed to send a signal, that Americans should not use certain tools and software, even for perfectly legitimate purposes," the article said. Coin Center said it would seek to engage with OFAC to do its best to help Tornado Cash's innocent banned addresses withdraw funds and discuss with lawyers the legal basis for Tornado Cash's ban.

According to BlockBeats, Coinbase CEO Brian Armstrong commented on the Tornado Cash sanctions on social media on August 15: "Sanctioning a technology [rather than an individual or entity] seems to me to be a bad precedent and perhaps it should be challenged. It could have many unintended consequences downstream of the crypto ecosystem. To be clear: we will always follow the law."

Uniswap front end is now blocking addresses receiving Tornado Cash related address transfer contamination, according to community sources, BlockBeats reported on August 14. The message reads "This address is blocked by Uniswap Labs interface because it is associated with one or more prohibited activities." Uniswap has also provided access to appeals.

BlockBeats news, on August 14, a Tornado Cash team member said in an interview that Tornado Cash DAO has been closed, Tornado Cash DAO oversigned wallet deleted, DAO funds have been returned to the governance contract.

According to BlockBeats, Aave posted on social media on August 14 that after the U.S. Treasury's Office of Foreign Assets Control (OFAC) added Tornado Cash to its sanctions list (SDN), The Aave team scrambled to integrate the API of TRM Labs, a blockchain intelligence company, on the IPFS front end to screen and block addresses that interact with post-sanction TC contracts. TRM's API risk parameters can identify all wallets that have interacted with Tornado Cash contracts since the onset of sanctions, even addresses that received 0.1 ETH transfers from Tornado Cash. These wallet holders may experience problems with the Aave application, one of the front ends of the Aave protocol. Aave said it is aware that the API may have made incorrect calls about which wallets should be included in the banned list, affecting addresses that received 0.1ETH transfers from Tornado Cash without consent. The Aave team has unblocked the address and said it will continue to evaluate responsible and reasonable risk mitigation measures in an emergency.

According to BlockBeats, on August 13, Justin Sun posted on social media that his personal address was blocked by Aave after receiving a transfer from a Tornado Cash related address.

According to BlockBeats, on August 13, Shenyu posted on social media that its personal DeFi mining address was blocked by Aave after receiving a transfer from a Tornado Cash related address.

According to BlockBeats, on August 13, according to community sources, Aave front may have started to block the address of Tornado Cash mining. The message reads "This address is banned by app.aave.com because it is associated with one or more prohibited activities."