U.S. Treasury sanctions Tornado Cash over cyber-crime concerns

#Crypto #TornadoCash #yahoofinance

Welcome back everyone the u.s treasury has sanctioned tornado cash so-called crypto mixing service accusing it of laundering billions of dollars yahoo finances david hollerth has the details what do we need to know about tornado cash so brad tornado cash is an open was an open source protocol meaning the code was publicly available on the internet and the program

Used sophisticated cryptography so that crypto and web3 users could obscure the trail of funds um that would that’s normally transparently seen on a blockchain now ofac added its website and associated addresses to its sdn list yesterday citing the service’s recurring use by north korea’s state-sponsored hacking cohort lazarus group which has been behind several

Of the major crypto hacks that have happened this year and u.s intelligence reports have connected stolen crypto to um funding for its met its weapons program so in the eyes of the u.s government that connection is seems like a clear national security issue but after the announcement um its website was also taken off google and uh the the creator of tornado

Cat cash roman simanov had his account on github microsoft owned github removed now this is typical uh this is just sort of typical ramifications of uh some sort of entity being sanctioned however crypto advocates and and users of tornado cash have sort of rallied behind it making the case that it’s an argument or making the case that it’s a violation of speech

In a way so what we know now is that the creators creators of tornado cash themselves um their locations remain undisclosed um but at at this moment unless there is another ongoing investigation that has not been revealed they’re not at in in immediate legal jeopardy however it does sort of uh point to the use of privacy in cryptocurrency which obviously on a

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Blockchain is otherwise just completely transparent david why would people use this service outside of illicit activity yeah brian it’s a good question i mean i think that uh i think there’s a lot of uh people coming out now who are sort of talking about why they would be used uh one obvious use case that that kind of occurred to me is that a lot of people do

Now i say a lot of people a lot more than they used to uh do get paid in cryptocurrency partially by their salary now in that scenario um they can either receive their pay through a centralized cryptocurrency exchange and in that event they have this risk which is that uh cryptocurrency exchanges aren’t fdic insured so in the event of a hack it’s really just the

Goodwill of an exchange if they want to pay back their customers also in a bankruptcy scenario it’s very unclear whether or not cryptocurrency users retain any rights to their assets in the courts that’s being decided right now and it doesn’t look super it doesn’t look like it’s leaning in favor of customers so given that risk another alternative is to use sort

Of a decentralized marketplace to get paid and effectively unless the user customer uses tornado cash um all their financial information is is available to their to their employer and anyone else who knows that that is their address so this is sort of a seems like a use case for um average people but that being said tornado cash at least according to ofac has

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Laundered about seven billion dollars since 2019 so it’s a tool effectively just open source software that’s available on the internet and it can be used by anyone so average people as well as bad actors well unfortunately bad actors have been using it i guess all right thanks so much david appreciate

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U.S. Treasury sanctions Tornado Cash over cyber-crime concerns By Yahoo Finance