Unchained
Is This the End of DeFi? Why the US Government Is Going After Tornado Cash - Ep. 536
Aug 25, 2023
Amanda Tuminelli, Chief Legal Officer at the DeFi Education Fund, dives into the controversial indictment of Tornado Cash co-founders. She clarifies the government's position on money laundering allegations and challenges the understanding of blockchain by regulators. Tuminelli discusses potential implications of these charges for all software developers and whether they could signal the end of DeFi in the U.S. The conversation raises urgent questions about KYC processes and the essential balance between privacy rights and legal scrutiny in the crypto landscape.
33:50
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Quick takeaways
- The US government indicted Tornado Cash developers for allegedly facilitating money laundering, raising questions about the responsibility of software developers for the criminal use of their software.
- The indictment of Tornado Cash founders based on their software development has implications for all software developers, potentially impacting innovation and creating a chilling effect on development.
Deep dives
Indictment of Tornado Cash Founders
The US government recently indicted three co-founders of Tornado Cash for conspiracy charges. They are accused of creating software that facilitated various crimes, including money laundering. The government alleges that over $1 billion was laundered using Tornado Cash. However, there is a distinction between the developers and the software itself, and the indictment raises questions about whether facilitation is the correct term. The charges are based on the concealment of potential proceeds of a crime rather than the direct facilitation of the crimes.
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