August 25, 2023

Is This the End of DeFi? Why the US Government Is Going After Tornado Cash - Ep. 536

33 minutes

On Wednesday, the U.S. Government indicted Tornado Cash developers Roman Storm and Roman Semenov for three counts of conspiracy involving a staggeringly large number: $1 billion in criminal proceeds. The U.S. Department of Justice attached North Korean hackers to a large portion of this sum, alleging that Tornado’s privacy tech enabled nefarious deeds. Amanda Tuminelli, chief legal officer of the DeFi Education Fund, joins the show to assess whether the U.S. Government got it right or is merely misguided in its understanding of how blockchain technology works. Should Tornado Cash devs be held to account for the criminal use of their software?

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Show highlights:

why the U.S. Government says the cofounders of Tornado Cash facilitated money laundering

what the difference is between the concealment of potential proceeds of a crime versus the facilitation of that crime

why Amanda believes that if the government understood the technology they wouldn’t be making these allegations

whether the charges and the indictment will have implications for all software developers

whether these allegations could mark the “end of DeFi” in the U.S.

whether front-end applications in DeFi will need to mandate KYC checks for all users

how the charges appear to contradict earlier FinCEN guidance

how the DOJ will use the involvement of North Korean hackers to “make it look bad” for the jury

what the future of the case will look like and whether there will be a motion to dismiss the indictment

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Guest

Amanda Tuminelli, Chief Legal Officer at DeFi Education FundLinks

Previous coverage of Unchained on Tornado Cash:

The Chopping Block: 'Code Is Law' Is 'Obviously Not How Anything Works Ever'

The Chopping Block: Why DeFi May Be Over-Complying With Tornado Cash Sanctions

Preston Van Loon on Ethereum’s Merge and His Lawsuit Against Treasury

Given the Sanctions on Tornado Cash, Is Ethereum Censorship Resistant?

The Chopping Block: Did OFAC Overstep by Sanctioning Tornado Cash?

Tornado Cash Sanctioned. Did the Government Overstep Its Bounds?

Unchained:

Tornado Cash Cofounder Arrested, Another Sanctioned by U.S. Government

OFAC Updates Tornado Cash Sanctions To Include DAO

Coin Center Sues the US Treasury Over Tornado Cash Sanctions

Coin Center: New Tornado Cash indictments seem to run counter to FinCEN guidance

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By Laura Shin

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