The Hard Truths and Worrying Consequences of the Tornado Cash Verdict

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The Hard Truths and Worrying Consequences of the Tornado Cash Verdict
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Daniel Kuhn is a deputy managing editor for Consensus Magazine. He owns minor amounts of BTC and ETH.

The biggest and most established global event for everything crypto, blockchain and Web3.There are hard truths in life, and then there are the things we want to believe. The sentencing of Tornado Cash developer Alexey Pertsev to 64 months in prison in the Netherlands shows how these two things are often at odds. On both sides of the debate over the sanctioned crypto mixer, there are bad arguments and even worse conclusions.

Moreover, it was always the case that jostling together funds from a variety of sources, licit and illicit, was likely to be construed as a form of money laundering. Indeed, part of Pertsev’s defense was acknowledging that, even if money laundering was happening, because the protocol operated like a robot on a blockchain and users always maintained"exclusive control” over their funds, if anyone is to blame it is the users themselves. This is to say nothing that Tornado’s devs did maintain a frontend, through which 90+% of users went through.

Then there is the stultifying conclusion that, apparently, developers are somehow responsible for how people use their programs. This is not just a fundamental misunderstanding of how immutable smart contract protocols work, but there is seemingly no end to the liability this could cause for anyone who builds anything, and not just software.

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