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Honestly, I'm also flabbergasted when the guy is basically running an unregulated exchange that offers what are almost certainly unregistered securities[1] (def

by dvt 4y ago

Honestly, I'm also flabbergasted when the guy is basically running an unregulated exchange that offers what are almost certainly unregistered securities[1] (definitionally, the value of $SUSHI LP tokens goes up when people trade other projects' tokens, so the Howey Test is clearly violated) and freely chooses to live in the US. The SEC is shooting fish in a barrel. [1] https://coinmarketcap.com/currencies/sushiswap/ https://coinmarketcap.com/currencies/sushiswap/

blastro 4y ago
> shooting fish in a barrel There's a sushi joke in there somewhere
- Topgamer7 4y ago
  Its rare for sushi to be grilled like this. But the SEC is going to make a go of it.
jgilias 4y ago
But he’s not exactly _running_ the exchange, is he? I mean, it’d be interesting to see how the SEC asks him to shut it down, and of course that’s actually impossible for him (or anyone really) to do.
- dvt 4y ago
  If Tornado Cash was shut down (where everyone was pseudo-anonymous), SushiSwap can definitely be shut down. And TC wasn't exactly "shut down," it was just crippled by being blacklisted by USDC (Circle), essentially banned from all legitimate exchanges via sanctions, etc. Without liquidity, these financial toys are just dead code.
  - monero-xmr 4y ago
    What's interesting is a steady stream of volume continues to flow through Tornado Cash, proving that it was indeed decentralized enough to withstand global sanctions. Although all funds exiting it are suspicious. One thing to remember is that the sanctions on TC currently only apply to US citizens and companies, although effectively given the US' dominant financial position globally, is indeed a massive red flag. https://decrypt.co/123751/euler-finance-hacker-sends-1-6m-eth-tornado-cash https://decrypt.co/123751/euler-finance-hacker-sends-1-6m-et...
  - berberous 4y ago
    Tornado Cash was sanctioned by OFAC, which makes it illegal for U.S. persons to interact with the relevant contract addresses to the same extent as interacting with North Korea. SushiSwap is not going to be sanctioned. It's not clear what the U.S. could do to shut it down in the same manner, although of course, they could bring enforcement actions like this one and scare off any U.S. person from working on it.
  - luizcdc 4y ago
    The relevant bit is that the guy that is supposedly "running" this alledged unregulated security exchange can't shut it down himself. How is he running it if he's got no actual power over it?
ejanus 4y ago
But uni is also into irregular exchange. So, why are they not subpoenaed?
- deleted 4y ago
  [deleted]
Kretinsky 4y ago
What is the crime here? Crypto trading is done by willing individuals, no one is forcing you to participate in this market. Moreover, “regulation” is not a synonym of “good and righteous”, especially in the US, where things are quite shady when you look from the outside. FTX was the dear of the regulators, and ended us as a massive scam. The recurrent crises in the banking sector show that regulation is, frankly, quite useless. Furthermore, the US has a long history of using “regulation” as a way to do financial repression against its population and other countries. Crypto, among all the scams and dubious projects, is one of the last harbingers of financial freedom in a world that gets darker and darker every day on that aspect. Don't believe me? Well, the day you'll be on the longer end of the stick, you'll understand.
- dvt 4y ago
  > What is the crime here? https://www.law.cornell.edu/wex/securities_act_of_1933 https://www.law.cornell.edu/wex/securities_act_of_1933 But you bring up great points, and that's exactly why we use a political system called a "representative democracy" where if you don't like the laws, you can vote for those that align with your worldview, you can run for office yourself, or you can lobby your politicians to change them. (Breaking the law is unfortunately not on that list.)
  - sneak 4y ago
    No. The laws don't expire; we are mostly ruled by laws that we were not in any way represented for. Everyone who was of voting age who could have voted for senators who ratified the income tax amendment is dead now. There is no person now living under the sixteenth amendment that was involved in its passage. None of us alive today were voting for congressional reps back in '33; correspondingly the securities act applying to us is not in any way related to representative democracy. It might as well be dictatorial edict for all of our involvement.
    - dvt 4y ago
      Are you trying to argue that, under your proposed system of laws, we would need to re-litigate (for example) murder or arson for every new generation? Seems a bit silly. Either way, precedent can be freely overturned, so the Securities Act isn't immutable. It's just that most people still think it's a good idea.

by dvt 4y ago

blastro 4y ago

> shooting fish in a barrel There's a sushi joke in there somewhere

Topgamer7 4y ago
Its rare for sushi to be grilled like this. But the SEC is going to make a go of it.

jgilias 4y ago

But he’s not exactly _running_ the exchange, is he? I mean, it’d be interesting to see how the SEC asks him to shut it down, and of course that’s actually impossible for him (or anyone really) to do.

dvt 4y ago
If Tornado Cash was shut down (where everyone was pseudo-anonymous), SushiSwap can definitely be shut down. And TC wasn't exactly "shut down," it was just crippled by being blacklisted by USDC (Circle), essentially banned from all legitimate exchanges via sanctions, etc. Without liquidity, these financial toys are just dead code.
- monero-xmr 4y ago
  What's interesting is a steady stream of volume continues to flow through Tornado Cash, proving that it was indeed decentralized enough to withstand global sanctions. Although all funds exiting it are suspicious. One thing to remember is that the sanctions on TC currently only apply to US citizens and companies, although effectively given the US' dominant financial position globally, is indeed a massive red flag. https://decrypt.co/123751/euler-finance-hacker-sends-1-6m-eth-tornado-cash https://decrypt.co/123751/euler-finance-hacker-sends-1-6m-et...
- berberous 4y ago
  Tornado Cash was sanctioned by OFAC, which makes it illegal for U.S. persons to interact with the relevant contract addresses to the same extent as interacting with North Korea. SushiSwap is not going to be sanctioned. It's not clear what the U.S. could do to shut it down in the same manner, although of course, they could bring enforcement actions like this one and scare off any U.S. person from working on it.
- luizcdc 4y ago
  The relevant bit is that the guy that is supposedly "running" this alledged unregulated security exchange can't shut it down himself. How is he running it if he's got no actual power over it?

ejanus 4y ago

But uni is also into irregular exchange. So, why are they not subpoenaed?

deleted 4y ago
[deleted]

Kretinsky 4y ago

What is the crime here? Crypto trading is done by willing individuals, no one is forcing you to participate in this market. Moreover, “regulation” is not a synonym of “good and righteous”, especially in the US, where things are quite shady when you look from the outside. FTX was the dear of the regulators, and ended us as a massive scam. The recurrent crises in the banking sector show that regulation is, frankly, quite useless. Furthermore, the US has a long history of using “regulation” as a way to do financial repression against its population and other countries. Crypto, among all the scams and dubious projects, is one of the last harbingers of financial freedom in a world that gets darker and darker every day on that aspect. Don't believe me? Well, the day you'll be on the longer end of the stick, you'll understand.

dvt 4y ago
> What is the crime here? https://www.law.cornell.edu/wex/securities_act_of_1933 https://www.law.cornell.edu/wex/securities_act_of_1933 But you bring up great points, and that's exactly why we use a political system called a "representative democracy" where if you don't like the laws, you can vote for those that align with your worldview, you can run for office yourself, or you can lobby your politicians to change them. (Breaking the law is unfortunately not on that list.)
- sneak 4y ago
  No. The laws don't expire; we are mostly ruled by laws that we were not in any way represented for. Everyone who was of voting age who could have voted for senators who ratified the income tax amendment is dead now. There is no person now living under the sixteenth amendment that was involved in its passage. None of us alive today were voting for congressional reps back in '33; correspondingly the securities act applying to us is not in any way related to representative democracy. It might as well be dictatorial edict for all of our involvement.
  - dvt 4y ago
    Are you trying to argue that, under your proposed system of laws, we would need to re-litigate (for example) murder or arson for every new generation? Seems a bit silly. Either way, precedent can be freely overturned, so the Securities Act isn't immutable. It's just that most people still think it's a good idea.