The Chopping Block: Did OFAC Overstep by Sanctioning Tornado Cash? - Ep. 386

Published: Aug. 18, 2022, 7:30 a.m.

b"Welcome to The Chopping Block! Crypto insiders Haseeb Qureshi, Tom Schmidt, and Tarun Chitra chop it up about the latest news in the digital asset industry. In this episode, Laura Shin, host of Unchained and author of The Cryptopians, also joined the conversation.\\xa0\\n\\xa0\\nShow topics:\\n\\nWhat Tornado Cash is and why it got sanctioned by the OFAC\\n\\nThe difference between Tornado Cash and blender.io\\xa0\\n\\nWhether privacy is dead as a category and whether regulators are going after it\\n\\nHow these sanctions have a negative impact on the funding of privacy projects\\n\\nHow people within the industry can have different points of view, even when they understand the technology\\n\\nWhether the ban of Tornado Cash only means that malicious groups will just go and use other protocols\\n\\nWhy regulation by enforcement sucks\\n\\nThe asymmetry between the government\\u2019s sanction and the effort needed to push it back.\\n\\nWhat changes after the Merge for ETH in terms of centralization\\n\\nWhether some MEV solutions make Ethereum more centralized\\n\\nWhy MEV is intrinsic to blockchains and whether it is impossible to get rid of it\\n\\nWhy Proposer-Builder Separation is helpful for the network\\n\\nWhether MEV is illegal and the plausibility of major exchanges not extracting MEV\\n\\nWhy Facebook has an MEV extraction business model, according to Tarun\\n\\nHow some NFT exchanges are not enforcing royalties\\n\\nWhat Sudoswap is and how it works\\n\\nHow the royalties were there to bootstrap the supply side of NFTs\\n\\nWhy Tarun thinks music NFTs will never happen\\n\\nThe economic reasoning around royalties\\n\\nThe differences between NFT marketplaces like OpenSea and Magic Eden\\n\\nWhether NFTs have a real-world use\\n\\nHow Dragonfly\\u2019s acquisition of Metastable brought Laura some old memories\\n\\n\\nHosts\\n\\nHaseeb Qureshi, managing partner at Dragonfly Capital\\n\\nhttps://twitter.com/hosseeb\\n\\nTom Schmidt, general partner at Dragonfly Capital\\n\\nhttps://twitter.com/tomhschmidt\\n\\nTarun Chitra, managing partner at Robot Ventures\\n\\n\\nhttps://twitter.com/tarunchitra\\xa0\\n\\n\\xa0\\nLaura\\nTwitter: https://twitter.com/laurashin\\n\\n\\nEpisode Links\\n\\xa0\\nTornado Cash\\nTreasury Press release:\\xa0\\n https://home.treasury.gov/news/press-releases/jy0916#:~:text=WASHINGTON%20%E2%80%93%20Today%2C%20the%20U.S.%20Department,since%20its%20creation%20in%202019\\nDeveloper arrested: https://www.fiod.nl/arrest-of-suspected-developer-of-tornado-cash/\\nCoin Center\\u2019s article authored by Jerry Brito and Peter Van Valkenburgh: https://www.coincenter.org/u-s-treasury-sanction-of-privacy-tools-places-sweeping-restrictions-on-all-americans/\\nSecond Coin Center\\u2019s article authored by Jerry Brito and Peter Van Valkenburgh: https://www.coincenter.org/analysis-what-is-and-what-is-not-a-sanctionable-entity-in-the-tornado-cash-case/\\nCoin Center may challenge the US Treasury's decision to sanction Tornado Cash: https://decrypt.co/107475/coin-center-tornado-cash-ban-court\\nCircle freezes USDC in sanctioned wallets: https://www.theblock.co/post/162172/circle-freezes-usdc-funds-in-tornado-cashs-us-treasury-sanctioned-wallets\\xa0\\nCrypto exchange dYdX blocked accounts that received funds from Tornado Cash: https://www.coindesk.com/business/2022/08/11/crypto-exchange-dydx-blocked-accounts-that-received-even-small-amounts-from-tornado-cash/\\nThe possibility of forking Tornado Cash: https://www.coindesk.com/tech/2022/08/10/cloning-tornado-cash-would-be-easy-but-risky/\\n\\nLearn more about your ad choices. Visit megaphone.fm/adchoices"