Tornado Cash Provokes Legal Issues in the Crypto Market | Crypto

Tornado Cash Provokes Legal Issues in the Crypto Market

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– On August 8th, the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued legal sanctions against digital currency mixer Tornado Cash.
– Tornado Cash has been used for a host of illicit money laundering activities estimated to be worth $7 billion.
– On August 12th, Alexey Pertsev, the creator of Tornado Cash, was arrested by Dutch authorities.
– A mass of protesters gathered in Amsterdams Dam Square on August 20th to voice their displeasure with the handling of the matter.
– Abraham Piha, CEO and co-founder of Web3-focused firm Tomi, told Cointelegraph that government sanctions like these are scary if one starts looking at them objectively.
– Kenny Li, co-founder and core developer for Manta Network – a privacy-preservation protocol – told Cointelegraph that the Treasury’s decision to sanction Tornado Cash is far-fetched and extreme.
– One aspect of Pertsevs detention that has drawn public attention is that since his arrest, he has reportedly been denied visits of any sort, including those from his wife, Ksenia Malik.
– A recent report from blockchain security platform SlowMist found that approximately 74% of all funds stolen from the Ethereum network over Q1 and Q2 of this year made their way to Tornado Cash.
– In a recent interview, venture capitalist Kevin O’Leary stated that platforms like Tornado Cash – which are advertised as “privacy tools” – have created a culture where it is fine to tinker around with federal regulations.

 

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