Vitalik Buterin used the Tornado Cash mixer

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Ethereum co-founder Vitalik Buterin said he too used the US government-sanctioned Tornado Cash service.

August 9 Vitalik Buterin answered a Twitter user who noticed that services like Tornado Cash (TC) are often used for good purposes, such as donations. Buterin said he used the Tornado Cash service to donate funds to Ukraine.

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Tornado Cash is an Ethereum-based smart contract mixer that was banned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on August 8.

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According to US Department of the Treasurythe Tornado Cash service “has been used to launder more than $7 billion worth of virtual currency since its inception in 2019,” including $455 million that was stolen by the Lazarus Group, a hacker group known for its ties to North Korea.

Co-founder of Tornado Cash Roman Semenov declaredthat his GitHub account was also suspended, along with a number of other TC resources, including the Tornado Cash GitHub organization, smart contract addresses associated with Tornado Cash on Circle, RPC, etc.

The US government’s decision to ban TC has sparked a debate around services like Tornado Cash and their proper regulation.

Jerry Brit, Executive Director of Coin Center – a non-profit organization dedicated to policy issues related to cryptocurrency – notedthat the US government decided to take the easy way out. Instead of taking action against a specific person or agency, the government has chosen to simply sanction an instrument that is neutral in nature and can be used for both good and bad purposes.

Jake Chervinsky – Crypto Lawyer and Head of Policy at the Blockchain Association – declaredthat while the association supports the US Department of the Treasury’s “mission to combat illegal activity in the cryptocurrency industry”, they are at the same time concerned that the mixer ban “crosses a line that the US government has always respected.” He also added that the decision to “authorize <…> a decentralized protocol threatens that reasonable [и] a balanced approach to cryptocurrencies,” which the agency has previously supported.

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Source: Cryptocurrency

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