{"id":485347,"date":"2022-08-17T07:36:21","date_gmt":"2022-08-17T04:36:21","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tornado-cash-ban-could-spell-disaster-for-other-privacy-protocols-manta-co-founder\/"},"modified":"2022-08-17T07:36:21","modified_gmt":"2022-08-17T04:36:21","slug":"tornado-cash-ban-could-spell-disaster-for-other-privacy-protocols-manta-co-founder","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tornado-cash-ban-could-spell-disaster-for-other-privacy-protocols-manta-co-founder\/","title":{"rendered":"# Tornado Cash ban could spell disaster for other privacy protocols \u2014 Manta co-founder"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a412766017b2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a412766017b2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/tornado-cash-ban-could-spell-disaster-for-other-privacy-protocols-manta-co-founder\/#%E2%80%9D_Tornado_Cash_ban_could_spell_disaster_for_other_privacy_protocols_%E2%80%94_Manta_co-founder_%E2%80%9C\" >&#8221; Tornado Cash ban could spell disaster for other privacy protocols \u2014 Manta co-founder &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Tornado_Cash_ban_could_spell_disaster_for_other_privacy_protocols_%E2%80%94_Manta_co-founder_%E2%80%9C\"><\/span>&#8221; Tornado Cash ban could spell disaster for other privacy protocols \u2014 Manta co-founder &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvNWJhYzNiNzEtYWFmOS00NDM4LWI3YzgtOGE4ZWMwOTllMjhkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>There are mounting concerns that recent United States government sanctions against Tornado Cash will become a \u201cslippery slope\u201d for Web3 privacy that could eventually make the entire space \u201cmeaningless.\u201d<\/p>\n<p>Speaking to Cointelegraph, Shumo Chu, co-founder of privacy protocol Manta Network expressed worry that the strict sanctions against Tornado Cash could have a knock-on effect on every Web3 protocol including ones providing privacy.<\/p>\n<p>Chu is one of the co-founders of Polkadot-based Manta Network, a layer-1 privacy protocol that enables private transactions in decentralized finance (DeFi). <\/p>\n<p>Tornado Cash (TORN) is an Ethereum (ETH) privacy protocol that anonymizes coin transactions. These protocols are similar to Monero (XMR) and Zcash (ZEC) which masks sender and receiver data of crypto transactions.<\/p>\n<p>Earlier this month, the U.S. Treasury Department effectively barred US residents from using the protocol and placed 44 ETH and USD Coin (USDC) addresses associated with it on the list of Specially Designated Nationals on Aug. 5.<\/p>\n<p>Chu expressed worry that other privacy protocols like his could wind up in the same crosshairs, which would add more censorship to the point it would \u201cessentially make the entire Web3 space meaningless.\u201d<\/p>\n<p>Chu acknowledged that the U.S. government ban was done ostensibly in the interest of national security as the North Korean hacker group Lazarus has been known to use Tornado to launder the funds it steals. <\/p>\n<p>But in banning the protocol, Chu questioned regulators\u2019 understanding of how decentralized systems based on open-source code can be located and operated anywhere.<\/p>\n<blockquote><p>\u201cIt\u2019s quite possible regulators just don\u2019t understand distributed blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> and how open source code can be anywhere. [They] may have actually thought Tornado Cash developers deliberately helped North Korean hackers.\u201d<\/p><\/blockquote>\n<p>Last week, Dutch police arrested a Tornado Cash developer they suspect is involved in money laundering.<\/p>\n<p>Chu added that there have been instances in the past where cryptography developers have been arrested, such as Ethereum developer Virgil Griffiths, but that banning a protocol is \u201ca new paradigm\u201d signaling the government is attempting to put a reign on code and mathematics itself.<\/p>\n<blockquote><p>\u201cThey are banning the protocol instead of some people. Essentially this is a piece of code from the Ethereum blockchain.\u201d<\/p><\/blockquote>\n<p>However, Chu believes that privacy protocol developers ultimately have the upper hand. He said that since privacy developers are distributed around many jurisdictions outside of the U.S. government\u2019s reach, noting: <\/p>\n<blockquote><p>\u201cIf the US tries to implement draconian measures over privacy devs, it won\u2019t go very well for them.\u201d <\/p><\/blockquote>\n<p>As a privacy protocol developer himself, Chu notes there is a narrative being set that privacy is only for bad actors, arguing that \u201cnormal people use it too.\u201d <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Tornado Cash shows that DeFi can\u2019t escape regulation<\/em><\/strong><\/p>\n<p>He added that there should be a push to promote good use cases as well because, as he said, \u201cthe nature of the system is permissionless, so there will be people gaming the system.\u201d<\/p>\n<p>His views echo those of Kraken CEO Jesse Powell who told <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-08-16\/kraken-s-powell-calls-tornado-cash-shutdown-unconstitutional#xj4y7vzkg\">Bloomberg<\/a> TV on Aug. 16 that the sanctions against Tornado were \u201cunconstitutional\u201d and that \u201cpeople have a right to financial privacy.\u201d<\/p>\n<p>In Chu\u2019s eyes, the barriers to entry into privacy protocols should be low so that normal people can use them every day. However, his ideal could be threatened by further sanctions of privacy protocols.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/tornado-cash-ban-could-spell-disaster-for-other-privacy-protocols-manta-co-founder\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Tornado Cash ban could spell disaster for other privacy protocols \u2014 Manta co-founder &#8220; There are mounting concerns that recent United States government sanctions against Tornado Cash will become a \u201cslippery slope\u201d for Web3 privacy that could eventually make the entire space \u201cmeaningless.\u201d Speaking to Cointelegraph, Shumo Chu, co-founder of privacy protocol Manta Network&#8230;<\/p>\n","protected":false},"author":1,"featured_media":485348,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvNWJhYzNiNzEtYWFmOS00NDM4LWI3YzgtOGE4ZWMwOTllMjhkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[15047,74894,74868,74355,70934,71523],"class_list":["post-485347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-privacy","tag-blockchain","tag-defi","tag-adoption","tag-regulation","tag-sanctions"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/485347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=485347"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/485347\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/485348"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=485347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=485347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=485347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}