[$] Tornado Cash and collateral damage

Post Syndicated from original https://lwn.net/Articles/904960/

On August 8, the US government sanctioned
the Tornado Cash
cryptocurrency
mixer for money laundering. The sanction means that no US citizen or
company can interact with Tornado Cash in any way, all assets of the
organization are to be reported so that they can be seized, and more. But
at the core of Tornado Cash is a chunk of open-source code for “smart contracts
that run in the Ethereum blockchain; that
code was “seized” as well. There
are some disturbing implications here for our communities.