CEO Kraken: Regulators went too far by blocking Tornado Cash

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Kraken CEO Jesse Powell has spoken out against US sanctions on addresses associated with cryptocurrency mixer Tornado Cash.

Powell stated that people “have a right to financial privacy” and many use Tornado Cash for legitimate reasons.

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The top manager questioned whether the sanctions were constitutional, adding that the Coin Center would sue the Treasury and OFAC over freedom of speech.

However, Powell believes that the community reaction is somewhat exaggerated. He said that although it was not necessary to remove the GitHub Tornado Cash code, he does not consider this event a sign of an attack on open source projects.

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He suggested that the sanctions were “a knee-jerk reaction” and a “hasty response” to the collapse of TerraUSD; regulators overreacted to protect the public.

Powell confirmed that despite his disagreement, Kraken will block transactions with addresses linked to Tornado Cash addresses:

We will prohibit withdrawals to any address associated with Tornado and will most likely freeze any funds coming from a Tornado address.

Coinbase CEO Brian Armstrong and Circle CEO Jeremy Aller also criticized the sanctions on the basis that they target the tool rather than a specific individual or entity.

The US Treasury Department sanctioned Tornado Cash addresses on August 8th. The developer of the service Alexey Pertsev was arrested by the Dutch authorities on August 12.

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Source: Cryptocurrency

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