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IANAL but I feel there's a lot of misinformation in this thread. There is no such thing as "tainted" ETH. The ETH was transferred from address 0x4B6275DB08c61a
by olalonde 4y ago
IANAL but I feel there's a lot of misinformation in this thread.
There is no such thing as "tainted" ETH. The ETH was transferred from address 0x4B6275DB08c61aeFBa7bADaaE93aa853e377CddB which is not a sanctioned address[0]. It is therefore fine to receive and spend that ETH.
It is possible that the donator violated US sanctions by taking it out of the Tornado Cash smart contract if: 1) they are a US person/under US jurisdiction 2) they are the same person that withdrew them from the Tornado Cash contract (not necessarily true).
Additionally, businesses which are not "money transmitters" (e.g. banks, crypto exchanges, etc.) are not subject to KYC regulations and are under no legal obligation to know the identity of their customers or donators.
Finally, I'd like to add that privacy-enhancing smart contracts like Tornado Cash have legitimate uses and were used for legitimate reasons, notably by Ethereum cofounder Vitalik Buterin who probably didn't like everyone observing and commenting on his Ethereum spending habits. I've seen a lot of "crypto critics" simultaneously criticize the transparency of blockchains and smart contracts like Tornado Cash which fix the problem...
[0] https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808 https://home.treasury.gov/policy-issues/financial-sanctions/...