Episode description
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
Ronin: https://www.cnbc.com/2022/04/15/ronin-hack-north-korea-linked-to-615-million-crypto-heist-us-says.html
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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