The Defiant - DeFi Podcast Court Overturns Tornado Cash Sanctions: What’s Next for Privacy? Preston Van Loon, Ethereum Core Dev
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Jan 27, 2025 Preston Van Loon, an Ethereum core developer and plaintiff in the Tornado Cash lawsuit, discusses the implications of recent court rulings on privacy and cryptocurrency. He highlights how sanctions on Tornado Cash affected legitimate users and the significance of treating smart contracts as property under U.S. law. Van Loon envisions a friendlier regulatory environment that could boost crypto innovation. He also explores governance challenges within the Ethereum community, emphasizing the need for decentralization and transparency as the ecosystem evolves.
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Preston's Tornado Cash Use
- Tornado Cash is a tool on Ethereum that anonymizes funds by pooling them, separating identity from assets.
- Preston Van Loon used it, keeping some ETH receipts for a 'rainy day', which became inaccessible after sanctions.
Lawsuit Backstory
- Coinbase sponsored the lawsuit against OFAC, covering all expenses for Preston and five other plaintiffs.
- Preston's brother, Joe Van Loon, also joined the lawsuit due to his use of Tornado Cash and incurred damages.
Current Legal Status
- While the court ruled in their favor, U.S. users still can't use Tornado Cash until sanctions are officially lifted.
- The Treasury has until February to decide whether to appeal to the Supreme Court, creating continued uncertainty.