Tornado Cash Developer Arrest Is Worrying

2 Min Read

What Is Tornado Cash?

Tornado cash is a service that allows users to virtually hide their transactions on Ethereum main net. It utilizes smart contracts that accept deposits made in ETH that are then withdrawn to other addresses. Since the withdrawal is made from the project’s smart contract liquidity pools, there is no way of knowing who the original sender is essentially providing a service that makes transactions private, normally transactions can be tracked extremely easily on the blockchain.

Why Was It Sanctioned By The US Treasury?

The US sanctioned Tornado Cash this week which sparked outcry from the industry and rightfully so. Tornado cash was accused of being used to launder “more than $7 billion worth of virtual currency” and although that may be true, banning tornado cash is like banning emails because scammers have made billions from phishing attacks. The problem lies not with the technology, it lies with a group of bad actors that use the Open-source code to hide their stolen crypto.

Tornado Cash

The Arrest Of The Developer

Today a 29 year old suspected to be involved in the creation of Tornado Cash has been arrested and will be tried in court today, this man is being arrested because he created an open-source system to make transactions private on Ethereum main net that criminals have used to launder money. This is an extremely worrying precedent and again it is like arresting whoever invented the email because some people use that system to scam people.

Why May Users Wish To Hide Their Transactions

One great example of this was recently when Ukraine published their ETH address for donations, one particularly interesting person to donate was Vitalik Buterin (Founder of Ethereum) and he donated through Tornado Cash as to keep this donation to Ukraine private from governments and others.

Vitalik Buterin on Twitter

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