Tornado Cash and Samourai Wallet Updates
summary
Panel argues that publishing privacy code leads to prosecutions: Tornado Cash developers face money laundering and sanctions charges (one Netherlands conviction yields a five year sentence for Alexey Pertsev), and Samourai Wallet authors are charged over a CoinJoin coordination server despite no custody of funds. DOJ's use of Section 1960 and Blanchard memo clash with FinCEN 2019 guidance; advocates push the Blockchain Regulatory Certainty Act and note OFAC delists contracts but keeps Roman Semenov sanctioned.
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chapters (18)
- 0:00Mike Orcutt opens the panel and introduces Amanda Tuminelli and Peter Van Valkenburgh
- 0:13Context: The Trump administration’s stance on prosecuting crypto privacy tool developers
- 1:30Amanda explains the Tornado Cash brief for Alexey Pertsev’s appeal in the Netherlands
- 3:01Discussion on the Dutch court’s misunderstanding of immutable smart contracts
- 4:51Amanda on the radical nature of Pertsev’s money laundering charge
- 6:56Peter compares Tornado Cash and Samourai Wallet cases, highlighting similar legal issues
- 8:21Explanation of Samourai Wallet’s CoinJoin coordination server
- 11:02Amanda details Section 1960 and DOJ’s misinterpretation in non-custodial cases
- 15:11Amanda on the Bank Secrecy Act and FinCEN’s 2019 guidance
- 17:30Amanda discusses the Blanchard memo’s impact on Section 1960 charges
- 19:43Peter on the contradictions in unlicensed money transmission charges
- 23:43Peter proposes amending the Bank Secrecy Act via the Blockchain Regulatory Certainty Act
- 27:02Amanda advocates for clarifying Section 1960 to protect non-custodial developers
- 28:43Peter addresses the sanctions charge against Tornado Cash developers and First Amendment concerns
- 33:51Amanda on the Treasury’s nuanced delisting of Tornado Cash software
- 36:09Peter on the dangers of sanctioning foreign developers like Roman Semenov
- 39:17Amanda’s call to support the Blockchain Regulatory Certainty Act in the Clarity Act
- 40:31Closing remarks and reflections on the importance of legal clarity
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