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I think my crypto info is behind the times. Can someone explain to me why people don't just exchange crypto for monero and then back if they want to "wash" it?

chizhik-pyzhik 4y ago
Tornado is nice because you can stay entirely within the Ethereum blockchain- no need to involve a centralized entity like an exchange to facilitate this. It's also arguably more private than monero. Tornado uses zk math instead of coinjoin; tornado also sticks to only a few values (1 eth, 10 eth, 100 eth...) which minimizes traceability
martinko 4y ago
Generally you need to use a custodial exchange to do this, which creates a point of failure/censorship. Doing this onchain / trustlessly on protocols such as thor have significant liquidity limits afaik.
- wollsmoth 4y ago
  I thought you could use something like uniswap which should avoid that I think? Haven't tried myself.
from 4y ago
Changenow and Morphtoken have very high slippage when you get in the millions of dollars also these are (temporarily) custodial exchanges who could basically take your money and say GFY. Coins from these exchanges are tainted anyways so it doesn’t really make a difference from a laundering perspective along with the fact that the fees are higher.
LatteLazy 4y ago
This is effectively a test case for banning Monero etc. This is similar because it's just a tumbler, not a currency etc with a Tumbler built in.
- wollsmoth 4y ago
  Well idk how one would go about banning Monero. You can ban it from exchanges that connect with the banking system but via decentralized exchanges it's still possible to convert.
  - LatteLazy 4y ago
    I think the same applies to Tornado? I am not sure and would be happy to be corrected. As far as I can tell, being sanctioned like this makes it illegal for US companies and people to do business with you. So I think in either case it would be users who were prosecuted? Enforcement is always the even messier bit of these broad and badly defined laws...
colinsane 4y ago
the Ethereum client ecosystem is one of the most robust. yeah, one can go eth -> zcash/monero back to eth, but that’s like a day-long process once you factor in blockchain syncing and blocktime/transaction settlement. TC is/was 5 minutes to enter and 5 minutes to exit.

chizhik-pyzhik 4y ago

Tornado is nice because you can stay entirely within the Ethereum blockchain- no need to involve a centralized entity like an exchange to facilitate this. It's also arguably more private than monero. Tornado uses zk math instead of coinjoin; tornado also sticks to only a few values (1 eth, 10 eth, 100 eth...) which minimizes traceability

martinko 4y ago

Generally you need to use a custodial exchange to do this, which creates a point of failure/censorship. Doing this onchain / trustlessly on protocols such as thor have significant liquidity limits afaik.

wollsmoth 4y ago
I thought you could use something like uniswap which should avoid that I think? Haven't tried myself.

from 4y ago

Changenow and Morphtoken have very high slippage when you get in the millions of dollars also these are (temporarily) custodial exchanges who could basically take your money and say GFY. Coins from these exchanges are tainted anyways so it doesn’t really make a difference from a laundering perspective along with the fact that the fees are higher.

LatteLazy 4y ago

This is effectively a test case for banning Monero etc. This is similar because it's just a tumbler, not a currency etc with a Tumbler built in.

wollsmoth 4y ago
Well idk how one would go about banning Monero. You can ban it from exchanges that connect with the banking system but via decentralized exchanges it's still possible to convert.
- LatteLazy 4y ago
  I think the same applies to Tornado? I am not sure and would be happy to be corrected. As far as I can tell, being sanctioned like this makes it illegal for US companies and people to do business with you. So I think in either case it would be users who were prosecuted? Enforcement is always the even messier bit of these broad and badly defined laws...

colinsane 4y ago

the Ethereum client ecosystem is one of the most robust. yeah, one can go eth -> zcash/monero back to eth, but that’s like a day-long process once you factor in blockchain syncing and blocktime/transaction settlement. TC is/was 5 minutes to enter and 5 minutes to exit.