Why Tornado Cash Remains the Most Pivotal Legal Case in Crypto

Indeed, it is not. We should have the right to transact freely online, whether itโ€™s to communicate with words or to exchange value in the form of crypto. The operation against Tornado supposes that all money sent through a mixer is necessarily dodgy, when, in all likelihood, only a portion of the $1 billion was laundered and sent to North Korea. Vitalik Buterin, for instance, used Tornado to send funds in support of Ukraine (presumably because he didnโ€™t want to make that donation public).

In effect, as my colleague Dan Kuhn noted adroitly last year, the U.S. government is sanctioning innocent coders in an effort to carry out a national security operation. โ€œSo far unable to actually persecute North Korea itself or bring to justice any suspected hackers โ€“ who are thought to be funding the wayward countryโ€™s nuclear missiles program, no less โ€“ the U.S. government is making an example out of a couple cryptocurrency coders,โ€ Kuhn said.

But the Tornado case is about more than privacy and even government overreach. Itโ€™s about whether governments should be able to stop transactions over open-source protocols that nobody controls. The reality of this, ironically, is proven by the very case itself. Even if Pertsev, Storm and Semenov go to prison for a dozen years, the smart contracts they created will still operate, just like Bitcoin continues to operate without a CEO or recognized founder.

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