Tornado Cash case: crypto anonymity vs regulation
The recent indictment of Tornado Cash developers brings the tension between crypto privacy and national security into sharp focus. What are the implications for the crypto world? One of the main issues affecting innovation is the potential for abuse by bad actors. Because of its pseudonymous nature, low cost, and ability to move vast sums, crypto has had its fair share of cases of misuse. Looking at the recent fiasco of Tornado Cash founders and the regulators, one could think that criminals are tipping the scales in the regulator’s favor. A recent report by blockchain research firm Chainalysis found that as much as $23.8 billion was laundered using crypto currency in 2022. The report estimated that cybercriminals have laundered over $67 billion using crypto since 2015. That amount excluded funds from so-called “offline crimes” such as drug trafficking and illegal gambling and only comprised money from hacks and ransomware attacks. It means that the actual figure...