Re:The U.S. Cracked a $3.4B Crypto Heist–and Bitcoin’s Anony...
by acdha on Friday April 14, 2023 @01:30PM
(#35572201)
Again, the problem is not the code but the running service. If you are involved in processing a transaction, you are required to follow applicable laws and risk consequences if you don’t. The technical details might explain how you got involved but they don’t remove the legal requirement.
In any case, what is being criticized in this particular thread is OFAC prohibiting all Americans from using Tornado Cash code. This is unprecedented, and clearly outside OFAC's statutory powers to sanction "entities".
Despite the US Treasury's claims, Tornado Cash is not in any way an entity, as it is not controlled by any party. It is simply code, running autonomously on a massively distributed blockchain. When someone uses it, they are using zero knowledge proofs to encrypt their transactions. The fact that this act of encryption adds their activity to the same anonymity pool as criminal activity is no more an argument for banning this encryption protocol as it is for banning any other encryption protocol.