"I think that one one sort of overall theme maybe is that there is a technology solution to all of this. So, while many fear that we might experience further signals from regulators that may create a chilling event for creativity and exploration, Redbord noted some light that may be at the end of the tunnel in all of this. Redbord described more obvious cases where sanctions are applied such as he describes it, "darknet market advertising, such as mixing services, like Helix and Bitcoin BTC fog, which were literally criminal enterprises that were advertising on the dark web, to launder funds in crypto." Redbord declared, "Is it complicated by the sort of decentralized nature by the fact that this is software, not necessarily an entity or an individual? Absolutely.” Kraninger said, “It does become challenging when you don’t have a real-world identity or a real-world intermediary in a system that you can actually put your hands on.software and protocols and wallets that you can create on your own with software.”
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In the words of Winston Churchill the “riddle, wrapped in a mystery, inside an enigma,” of Tornado Cash clearly has sent shock waves through the ecosystem as to how to interpret what behavior for computer scientists could run them afoul of the law. Kraninger highlighted the complications associated with cryptocurrency and sanctions enforcement, in that “people clearly who are caught in the crossfire of this who shouldn’t be at all associated with sanctions lists and so trying to figure out how to really segregate that out in a smart way is something they need to communicate about too.”
“The imperative to stop the illegal activity is there but the ability again for people who are not Jimmy Fallon or Brian Armstrong to prove the negative that they were not at all involved where their wallets were dusted.raises all kinds of challenging implications in this space,” stated Kraninger. gettyīeyond the immediate threat of how do we ensure a ‘tool’ does not cause a national security crisis, Kraninger highlighted the issues around consumer protection for anyone who may have their wallet ‘dusted’, or sent cryptocurrency from Tornado Cash without requesting it.
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