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I don't see where it says in the article that they were blocking known OFAC sanctioned addresses, etc., but they do state that they were operating without any K
by Paul-Craft 3y ago
I don't see where it says in the article that they were blocking known OFAC sanctioned addresses, etc., but they do state that they were operating without any KYC provisions whatsoever, and that is a big no-no if you don't want to run afoul of money laundering laws in the US:
> Tornado Cash operated without know-your-customer (KYC) or anti-money laundering (AML) programs as required by US law, the document alleges. It also did not register with FinCEN as a money-transmitting business, the indictment says. Semenov and Storm also created a document called “Tips to Remain Anonymous,” which advised customers to consider using Tor or a VPN, delete data from their web browsers, and leave their money in Tornado for longer periods of time to better anonymize their transactions. They also advised users to employ different IP addresses for deposit and withdrawal.
As a bonus, the investors wouldn't fund a compliant version:
> Storm suggested creating a version of Tornado with KYC / AML enabled, but Tornado’s unnamed venture capital investors were dismissive, saying, “I just don’t know if anyone will actually want this.” The investor added, “It would be unlikely as a fund that we’d use a ‘compliant mixer.’”
I'd say these investors are as complicit in whatever conspiracy the devs are being charged with as well.