Fighting to Save Itself: Tornado Cash DAO Proposes Legal Path to Fight U.S. Sanctions

This article comes fromThe Blocksecondary title

Odaily Translator | Nian Yin Si Tang

Summary:

Summary:

- A Tornado DAO member called on the community to hire a legal team to fight US sanctions.

- DAO members say successful overturn of sanctions would set precedent for crypto privacy.Tornado DAO members are currently discussing how the community should respondRecent U.S. Treasury Sanctions on Tornado Cash

. Meanwhile, the crackdown on Tornado Cash continues.Today, the Dutch Fiscal Information and Investigative Service (FIOD)A 29-year-old man was arrested in Amsterdam

. The man is suspected of being involved in the development of Tornado Cash, concealing the flow of criminal funds and facilitating money laundering. FIOD said it would pay extra attention to decentralized organizations that support money laundering. It is reported that FIOD’s investigation of Tornado Cash began in June this year, and there may be multiple arrests in this case.

One of the active participants presented a proposal titled "Saving Tornado Cash: Formally Challenging U.S. Treasury Department Sanctions"proposalproposal

. The proposers suggested that the DAO raise funds on behalf of Tornado Cash and hire a legal team to fight the sanctions. The proposal also calls on Tornado DAO to launch a legal challenge to the U.S. Supreme Court if necessary.

Successfully overturning the sanctions could set a precedent for other encrypted privacy solutions such as Tornado Cash, the proposer said. The proposal calls for the DAO to take advantage of the U.S. legal system, even as crypto users are skeptical of government agreements.

However, some respondents to the proposal questioned this approach. Chris Blec, a representative of MakerDAO, believes that since there is no legal entity called "Tornado Cash", raising funds in this name for legal defense may "start a whole new, misleading and dangerous situation." Blec said that Tornado Cash is software code, and the best way is to fight for the privacy of individuals.

secondary title

Other programs

Still other responders called for a Tornado Cash fork — creating other variants of the service using the protocol's code. Proponents of this approach say it will help further decentralize users' privacy when using crypto-mixing services.

This approach does have one major drawback, though. Tornado's effectiveness as a privacy tool for encrypted transactions comes from its important "anonymity set". An anonymous set is a large number of similar entities that cannot easily be distinguished from one another by an observer.In the case of Tornado Cash, an anonymity set is a collection of similar transaction inputs and outputs mixed together. Before the sanctions, Tornado Cash was the central hub for crypto mixing services with great liquidity. This remarkable fluidity creates an anonymity setting for users to ensure privacy. However, since the imposition of the sanctions,。

The protocol’s deposit volume has dropped by 79%

"For a privacy protocol like Tornado Cash to be effective, you need a 'central' implementation that can be used by as many people as possible. If you use multiple implementations, liquidity breaks, and deanonymization of individual users becomes a problem. would be much easier," said the DAO member who submitted the proposal.