Business

Kraken CEO Criticizes Tornado Cash Sanctions

Kraken CEO Criticizes Tornado Cash Sanctions thumbnail

Jesse Powell objects to sanctions against Tornado Cash, but his exchange must comply with the law.

Key Takeaways

  • Kraken CEO Jesse Powell has criticized sanctions imposed upon Tornado Cash by the U.S. Treasury and OFAC.
  • On Bloomberg TV, he suggested that Tornado Cash has legitimate uses and that users have a right to privacy.
  • Powell confirmed that Kraken will block transactions related to Tornado Cash addresses despite his objections.

Kraken CEO Jesse Powell has objected to recent U.S. sanctions against addresses tied to the Tornado Cash coin mixer.

Kraken Leader Defends Tornado Cash

Jesse Powell has criticized sanctions against Tornado Cash.

Powell argued in an interview with Bloomberg TV today that individuals “have a right to financial privacy” and said that many people are using Tornado Cash for legitimate reasons.

He also questioned whether the sanctions would survive a constitutional challenge, referring to Coin Center’s plan to take the Treasury and OFAC to court over freedom of speech.

However, Powell believes that the community response may be overblown. He said that, although the takedown of Tornado Cash’s GitHub code was unnecessary, he does not see these events as a sign of a wider attack on open-source projects.

Rather, he suggested that the sanctions were a “knee-jerk reaction” and a “hasty response” to TerraUSD’s collapse, adding that regulators overreacted with the intention of protecting the public.

Powell also confirmed that, despite his objections, Kraken will block transactions to and from addresses related to Tornado Cash addresses. “We would prohibit withdrawals to any addresses associated with Tornado and we would likely freeze any funds coming in from a Tornado address,” Powell told Bloomberg.

READ:  Kraken 'not happy' entering home opener but ready to build chemistry as Climate Pledge Arena tenure begins

Powell’s opposition to sanctions is expected given his past resistance to excessive regulation. In February, he criticized emergency measures from the Canadian government that targeted crypto exchanges. That same month, he refused to freeze Russian accounts at the request of Ukrainian Vice Prime Minister Mykhailo Fedorov.

Powell is not the only crypto leader to criticize sanctions against Tornado Cash. Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire have also criticized the sanctions on the grounds that they target a tool rather than a person or entity.

The U.S. Treasury first imposed sanctions on Tornado Cash addresses on August 8. One developer, Alexey Pertsev, was arrested by Duch authorities in the Netherlands on August 12.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

READ:  Kraken Daily Market Report for November 13 2022

See full terms and conditions.

Circle, GitHub Comply With Tornado Cash Sanctions


News


Circle and GitHub have both complied with recent U.S. sanctions against the Ethereum coin mixer Tornado Cash. Companies Enforce Tornado Sanctions Companies are beginning to block Tornado Cash-related activity. Earlier…

Circle, GitHub Comply With Tornado Cash Sanctions

“A Major Policy Issue”: Circle CEO Criticizes Tornado Cash Sanctio…


News


Circle quickly complied with the U.S. Treasury’s decision to sanction Tornado Cash, but its CEO is calling on industry leaders to establish a privacy-enabling policy framework. Circle CEO Comments on…

“A Major Policy Issue”: Circle CEO Criticizes Tornado Cash Sanctio...

U.S. Treasury Sanctions Ethereum Mixing Tool Tornado Cash


News


“Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors,” a statement from the Treasury said.  Treasury Sanctions Tornado Cash …

U.S. Treasury Sanctions Ethereum Mixing Tool Tornado Cash

Read More

Learn More: business analyst salary, business synonym, business administration jobs, business near me, business hours, business development manager salary, my business course, business in spanish, business headshots, business first, business unit, business brokers near me, dbusiness, 2 business days, is business administration a good major, business horizons, 7 business days, business knowledge, business use case.

Leave a Reply

Your email address will not be published. Required fields are marked *