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This is very alarming and a very overreaching thing by the government. These men wrote an open source protocol (smart contract) which was used by random folks to "also" launder money. Its like arresting Tor developers because people host illegal content on it. Leaving this here for more details and reference: https://rnikhil.com/2022/08/09/tornado-cash-block.html
[0]: https://news.ycombinator.com/item?id=37240901 [1]: https://news.ycombinator.com/item?id=37242043 [2]: https://news.ycombinator.com/item?id=37247966 [3]: https://news.ycombinator.com/item?id=37253522
Earlier quoted context omitted.
Huh? They were running tornado cash which existed for the sole purpose of laundering money. This isn't at all reaching, if your bank down the street started shredding records for deposits in order to transact with drug dealers, they would also be arrested.
But this isn't the same. Going by your example, its like arresting the designer of the shredder machine
At one point, when the founders suggested they create a version of the service that would adhere to federal anti-money-laundering and know-your-customer rules, the investors at the venture capital fund “dismissed the idea,” the indictment says. One of them allegedly wrote “it would be unlikely that as a fund we’d use a ‘compliant mixer.’”
The investment being referred to seems to have been into the "Peppersec Inc" entity.
They're anonymized this way in the indictment and online listings don't seem to list this mystery funder.
Honestly that would not have caused me to read the article. I clicked because I didn't really know what laundering cryptocurrency itself would involve, except a "washing machine" site (which is of course this is). I was hoping to learn something new.
The way to win with a washing machine is to run one, and then when the volume gets high enough just take all the crypto for yourself -- by definition you'd be untraceable, just as your customers wanted.
Earlier quoted context omitted.
Huh? They were running tornado cash which existed for the sole purpose of laundering money. This isn't at all reaching, if your bank down the street started shredding records for deposits in order to transact with drug dealers, they would also be arrested.
But this isn't the same. Going by your example, its like arresting the designer of the shredder machine
There's no legitimate reason for those to exist. Or this.
Previously: Tornado Cash Founders Charges with Money Laundering[0](5pts, 0 comments, 1 day ago), Tornado Cash devs charged with laundering more than $1B[1](110pts, 113 comments, 1 day ago), Tornado Cash founders charged with laundering more than $1B[2](2pts, 0 comments, 12 hours ago), U.S. Charges Two Alleged Founders of Tornado Cash with Money Laundering[3](1pt, 0 comments, 5 hours ago) [0]: https://news.ycombinator…
I smell a swap. Roman Storm for Evan Gershkovich and Snowden?
This is concerning: At one point, when the founders suggested they create a version of the service that would adhere to federal anti-money-laundering and know-your-customer rules, the investors at the venture capital fund “dismissed the idea,” the indictment says. One of them allegedly wrote “it would be unlikely that as a fund we’d use a ‘compliant mixer.’”