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> What will happen to the tainted money? This figure is about 400M$. I expect a secondary market for TCtETH (Tornado cash tainted ETH) 1) The sanctions only ap

> What will happen to the tainted money? This figure is about 400M$. I expect a secondary market for TCtETH (Tornado cash tainted ETH) 1) The sanctions only apply to U.S. persons. 2) My understanding is that it's fine to accept "tainted" ETH as long as it doesn't directly come from one of the Tornado Cash contract addresses[0]. [0] https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808 https://home.treasury.gov/policy-issues/financial-sanctions/...

sofixa 4y ago
> The sanctions only apply to U.S. persons Are you sure? That's usually not how US sanctions work - they claim extraordinary jurisdiction. E.g. BNP Paribas were fined for transacting with Iran even though they're a French bank and France has not sanctioned Iran (to that extent).
- olalonde 4y ago
  That's what the OFAC press release explicitly claimed[0]. There are plenty of countries outside the U.S. doing business with Iran by the way, see this thread[1]. The press release I found on the Paribas case states that they were using the U.S. financial system to violate sanctions[2]. [0] https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808 https://home.treasury.gov/policy-issues/financial-sanctions/... [1] https://news.ycombinator.com/item?id=32054821 https://news.ycombinator.com/item?id=32054821 [2] https://www.justice.gov/opa/pr/bnp-paribas-sentenced-conspiring-violate-international-emergency-economic-powers-act-and https://www.justice.gov/opa/pr/bnp-paribas-sentenced-conspir...
  - JumpCrisscross 4y ago
    > what the OFAC press release explicitly claimed You linked to [1]. Better links might be [2][3]. Broadly speaking, if you're an SDN (a) U.S. persons are prohibited from doing business with you and (b) your assets under U.S. jurisdiction are subject to seizure. That second bit is the problematic one. Because due to secondary sanctions, even a non-U.S. person interacting with an SDN can be subject to asset seizure. So in practice, anyone who has a U.S. nexus will stop doing business with you. (Or the U.S. can take their stuff. Also, everyone who doesn't want the U.S. to take their stuff will stop doing business with them.) [1] https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808 https://home.treasury.gov/policy-issues/financial-sanctions/... [2] https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists https://home.treasury.gov/policy-issues/financial-sanctions/... [3] https://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Control#Authority_and_activities https://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Contr...

sofixa 4y ago

> The sanctions only apply to U.S. persons Are you sure? That's usually not how US sanctions work - they claim extraordinary jurisdiction. E.g. BNP Paribas were fined for transacting with Iran even though they're a French bank and France has not sanctioned Iran (to that extent).

olalonde 4y ago
That's what the OFAC press release explicitly claimed[0]. There are plenty of countries outside the U.S. doing business with Iran by the way, see this thread[1]. The press release I found on the Paribas case states that they were using the U.S. financial system to violate sanctions[2]. [0] https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808 https://home.treasury.gov/policy-issues/financial-sanctions/... [1] https://news.ycombinator.com/item?id=32054821 https://news.ycombinator.com/item?id=32054821 [2] https://www.justice.gov/opa/pr/bnp-paribas-sentenced-conspiring-violate-international-emergency-economic-powers-act-and https://www.justice.gov/opa/pr/bnp-paribas-sentenced-conspir...
- JumpCrisscross 4y ago
  > what the OFAC press release explicitly claimed You linked to [1]. Better links might be [2][3]. Broadly speaking, if you're an SDN (a) U.S. persons are prohibited from doing business with you and (b) your assets under U.S. jurisdiction are subject to seizure. That second bit is the problematic one. Because due to secondary sanctions, even a non-U.S. person interacting with an SDN can be subject to asset seizure. So in practice, anyone who has a U.S. nexus will stop doing business with you. (Or the U.S. can take their stuff. Also, everyone who doesn't want the U.S. to take their stuff will stop doing business with them.) [1] https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808 https://home.treasury.gov/policy-issues/financial-sanctions/... [2] https://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists https://home.treasury.gov/policy-issues/financial-sanctions/... [3] https://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Control#Authority_and_activities https://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Contr...