Tornado Cash Develoepr got arrested, why Monero, Beam or Secret founder are free

Aliem Nur

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Quote from: GreatArkansas on September 20, 2022, 12:09:05 AM

Quote from: Flexystar on September 19, 2022, 10:29:54 PM

Why would the privacy factor matter in this case? There are thousands of coins which are listed and invested for the sake of privacy and that is what crypto is all about.
(....)

Because it lures scammers/hackers/illegal money laundering. For sure there are already a lot of people or entity already used this platform to launder money and the government already notice it and this is already their approach to fighting it. This is just a very bad news or day for cryptocurrency community because the essence of decentralization or privacy is getting destroyed.

privacy coins have been predicted to be a threat to the government, but indeed one of them,
that is Tornado Cash who is in America, has become a victim,
for Monero, Firo, Beam and Secret I think it is still safe, because they do not deal with America

dansus021

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i think its because the tornado cash is way popular than both, but it think that not the reason.

owh it maybe because tornado cash has tight with a lot of DeFi hacking and the money usually send to the tornado cash and the value of total maybe in a billion level i think this is reasonable

beside tornado cash there is bunch of bitcoin mixing as they used for buy illegal stuf but I'm rarely hear about monero been using as the criminal

Cuda911

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Quote from: ?? on ??

I think this is because the tornado cash only used ETH transactions. And that it is more likely that ETH has good potential at the government level. So the government did not allow such a mixer to operate and taught a lesson to the rest. Other private coins are of little interest, oddly enough.

Yes that's called infura, its centralised and trackable, this sucks so much and I am starting to get this weird feeling that Ethereum as a security could lead to its death, I do hope that vitalik buterin knows what he is doing, there is a rumour that CBDC could be built on Ethereum for few countries.

GreatArkansas

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Quote from: Flexystar on September 19, 2022, 10:29:54 PM

Why would the privacy factor matter in this case? There are thousands of coins which are listed and invested for the sake of privacy and that is what crypto is all about.
(....)

Because it lures scammers/hackers/illegal money laundering. For sure there are already a lot of people or entity already used this platform to launder money and the government already notice it and this is already their approach to fighting it. This is just a very bad news or day for cryptocurrency community because the essence of decentralization or privacy is getting destroyed.

Flexystar

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Why would the privacy factor matter in this case? There are thousands of coins which are listed and invested for the sake of privacy and that is what crypto is all about. Duh! Are we forgetting that bitcoin is parent of every stuff out there with it's pseudonymous nature? Owner's responsibility is to work within the given jurisdiction and keep up with the privacy at the same time through blockchain and its work nature. If there is any scam being done through such activities like money laundering, mixing of the coins which were illegal in the first place, hiding huge sum of money over blockchain to avoid the taxes, then could be in trouble for that. The dev surely did some spurious stuff to get to that level.

Novita

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Quote from: agentF on September 10, 2022, 11:40:23 AM

Hey all!

So I was wondering why the developer of tornado cash got arrested while the founder of

Monero, Beam, Secret, Zcash - which support privacy are free and even listed on Binance?

Are they corporate with the US government?

What is the different?

The US Treasury Department sanctioned Tornado Cash, alleging that several hacker groups, one of which was North Korea's Lazarus Group, had used the site to launder billions of dollars.

TastyChillySauce00

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Tornado cash blatantly being used for money laundering purpose. This is what i got from the thing that happened. Tornado cash has been aiming by so many countries if it was always helping criminal to withdraw money from scamming others. I think that was the reason
That's unlike the monero blockchain which was not focusing like that. The fact that monero developers can also be sued by regulators anytime.

Scripture

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If there’s no formal case against you there’s no reason for the authority to arrest you. Is there any pending case agains Monero founder? I think none. Well there’s a lot of issue against Tornado and most probably it’s founder will have to face that issues legally or else he will be in jail for years to come. This is not a biased movement from the government, they are just implementing the law, better to file a case if you see the founder of Monero to be in jail which I think should have enough evidence.

Xal0lex

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Apparently, this is due to the fact that Tornado cash very often appeared in various reports related to DeFi hacks. After all, it was a favorite place for hackers to launder money, and the amounts there were huge. Of the last major hacks where this mixer was used, we can recall the Ronin hack. Perhaps the too frequent mention of this service in the news related to the theft of funds was the reason for the regulators to pay close attention to it.

vv181

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Quote from: Yogee on September 18, 2022, 05:59:03 PM

What case should they file if they arrest these coin devs? Is it accessory to money laundering? ~ Why did they go after these criminals only and not the Bitcoin developers?

They not directly alleged the suspect of developer involved in the money laundering but their allegation is to facilitated money laundering to happen, about the laundering case is you know the alleged north Korean Lazarus hacker and also many cryptocurrency scams who are using the platform.

The Dutch authority press release should suffice to explain their reason for the arrest: Arrest of suspected developer of Tornado Cash.

This is the part where it is wrong, IMO. Do you really think the Tornado Cash developer can be considered criminal where in fact he just developing an open source tool?

Silberman

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Quote from: JeromeTash on September 18, 2022, 04:59:21 PM

Because there were claims that there was proof that money from a certain hacking group in Korea which is a top enemy of the US Government laundered money stolen money through Tornado cash. The same thing happened to blender.io, and it was sanctioned.

If the same happens on coins like monero and the US government manages to connect the dots. I am pretty sure they will swiftly sanction them too but to this point, I think they have been unable to do so.

This is the explanation that makes the most sense, the US government is sure there is something going on with Tornado cash which is why they took legal actions against it, but in the case of the developers of privacy coins like Monero they got nothing which can link them to those activities, but if they got something at some point in the future we can be sure they will make a move against them as well if that time comes.

sunsilk

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The difference is that the government's eyes are only into Tornado Cash at the moment. The attention it has got was extreme to the point that they've focused on it for that matter.

Remember when Monero was delisted into exchanges in South Korea and also likely other offshore exchanges? It's because the eyes from that moment was only for Monero.

I guess the government is doing a one-by-one step for tracking all of them down and can't do much things based on the resources they have.

Yogee

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What case should they file if they arrest these coin devs? Is it accessory to money laundering? Then how about the fact that criminals used BTC to launder money in the past? Why did they go after these criminals only and not the Bitcoin developers?

Quote from: ?? on ??

I think this is because the tornado cash only used ETH transactions. And that it is more likely that ETH has good potential at the government level. So the government did not allow such a mixer to operate and taught a lesson to the rest. Other private coins are of little interest, oddly enough.

That's an unlikely reason. Some bitcoin mixers accused of money laundering were also shutdown by the authorities before.

JeromeTash

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Heisenberg

Because there were claims that there was proof that money from a certain hacking group in Korea which is a top enemy of the US Government laundered money stolen money through Tornado cash. The same thing happened to blender.io, and it was sanctioned.

If the same happens on coins like monero and the US government manages to connect the dots. I am pretty sure they will swiftly sanction them too but to this point, I think they have been unable to do so.

o48o

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Because tornado devs were laundering money. Or at least they were accused of doing so.

These others are just developing protocols for confidential transactions and studying zero knowledge proofs. That's not illegal.

On the other hand dealing with currencies that are used to escape regulations can be declared as illegal because of AML laws. But not yet as it doesn't really matter as long as you are converting it to fiat money you get to deal with regulators. And if they are not happy about your explanation where you got the money, they will just confiscate it.

vv181

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Bump, I was bookmarking this thread because I also wonder the same thing and like to hear someone's response.

One thing I know for sure is that Monero is not incorporated with any governmental entity, especially the US. And also likely Zcash as far as I am concerned. The other project you mentioned, I did not know much about it. Looking a few years back, IRS has a bounty for someone to crack Monero transactions, but I don't know if it is still in effect, so it is highly unlikely for them to stand behind the government's backs.

Regarding the subject, based on my observation it looks like the news hasn't covered an update yet again regarding the developer, so there is nothing much to know about the hearing case.

agentF

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Hey all!

So I was wondering why the developer of tornado cash got arrested while the founder of

Monero, Beam, Secret, Zcash - which support privacy are free and even listed on Binance?

Are they corporate with the US government?

What is the different?

Topic: Tornado Cash Develoepr got arrested, why Monero, Beam or Secret founder are free (Read 149 times)