Tornado Cash Sanctioned. Did the Government Overstep Its Bounds? - Ep. 384
Jerry Brito, executive director of Coin Center, talks about Tornado Cash, why it was sanctioned, and what this means for privacy in crypto. Show highlights: what is and how it relates to Tornado Cash how hackers have used Tornado Cash...
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Show Notes
Jerry Brito, executive director of Coin Center, talks about Tornado Cash, why it was sanctioned, and what this means for privacy in crypto.
Show highlights:
- what Blender.io is and how it relates to Tornado Cash
- how hackers have used Tornado Cash to launder money
- whether the Office of Foreign Assets Control made a mistake, according to Jerry
- how Americans were affected by the sanctions
- why Jerry believes OFAC should have done an analysis to estimate how many people would be impacted by its decision
- whether the sanctions should have been aimed at North Koren wallets and not the protocol
- whether the sanctions are unconstitutional and whether Coin Center will litigate this
- how Jerry believes Circle freezing USDC complicated everything
- what the famous people who received 0.1 ETH from random accounts via Tornado Cash should do
- what would happen if someone forked the Tornado Cash code and deployed a copycat smart contract to a new address
- whether the sanctions signal the beginning of a privacy war on crypto
- how regulators are applying the same traditional rules with crypto as they use with centralized entities
Thank you to our sponsors!
1inch: https://1inch.io/
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021
Jerry
Twitter: https://twitter.com/jerrybrito
Tornado Cash
Tornado Cash Sanctioned: https://www.coindesk.com/policy/2022/08/08/crypto-mixing-service-tornado-cash-blacklisted-by-us-treasury/
Coin Center’s article authored by Jerry Brito and Peter Van Valkenburgh: https://www.coincenter.org/u-s-treasury-sanction-of-privacy-tools-places-sweeping-restrictions-on-all-americans/
Circle freezes USDC in sanctioned wallets: https://www.theblock.co/post/162172/circle-freezes-usdc-funds-in-tornado-cashs-us-treasury-sanctioned-wallets
Crypto exchange dYdX blocked accounts that received funds from Tornado Cash: https://www.coindesk.com/business/2022/08/11/crypto-exchange-dydx-blocked-accounts-that-received-even-small-amounts-from-tornado-cash/
The possibility of forking Tornado Cash: https://www.coindesk.com/tech/2022/08/10/cloning-tornado-cash-would-be-easy-but-risky/
What the sanctions mean for privacy coins: https://www.coindesk.com/layer2/2022/08/09/what-the-tornado-cash-sanction-means-for-privacy-coins/
Tornado Cash laundered $1.5 billion, according to Elliptic: https://hub.elliptic.co/analysis/tornado-cash-mixer-sanctioned-after-laundering-over-1-5-billion/
Celebrities get Dusted: https://decrypt.co/es/107090/tornado-cash-dusts-public-wallets-jimmy-fallon-brian-armstrong-steve-aoki-logan-paul
Hacks linked to Tornado Cash
Harmony: https://decrypt.co/104138/north-korean-attackers-behind-100m-harmony-hack-report
Crypto.com: https://www.wired.com/story/crypto-hack-nso-group-security-news/
Nomad: https://decrypt.co/106459/crypto-bridge-nomad-exploited-190m-frenzied-free-for-all
Previous Coverage of Unchained: Will the Nomad Mass Looting Change How Law Enforcement Treats DeFi Hacks?: https://unchainedpodcast.com/will-the-nomad-mass-looting-change-how-law-enforcement-treats-defi-hacks-ep-382/
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