> Another amusing lesson arises from a griefer who sent small amounts of Ethereum (0.1Eth or about $200) to numerous high-profile Ethereum wallets. These wallets then found themselves locked out of numerous “decentralized” services.
> This was due to how centralized services Chainalysis, TRM, and Elliptic provide an oracle to say, “This is a sanctioned wallet, do not accept,” to the numerous centralized services that actually power the Ethereum ecology.
@rysiek basically, OFAC does everyone on earth a solid by whacking Tornado Cash
For something touted by crypto as "decentralized", it sure is dependent on centralized infrastructure!
Lol, I love these bits:
> The cryptocurrency space has long hoped to emulate the business model of Uber: ignore the regulations until you can grow too big to regulate, a technique called “regulatory escape velocity.” With Uber, the primary tool was simply violating taxi regulations among thousands of independent municipalities and daring the local regulators to do something. With cryptocurrency, the common excuse is to just “write code” that ignores centuries of financial regulation and then let it loose upon the world.
This is really one of those scams where it really pays to know the "shape" because then you will recognize this everywhere.
> the cryptocurrency community has long believed that if you create an automated box where you put clean and dirty money in and shake it around, all the money comes out clean rather than dirty.
This is a great point. All the money moved through one of those mixers should be considered dirty...
@rysiek I only heard about Justin Sun getting Tornadoed :D but this is a phenomenon in cryptocurrencies that I'm happy to see popularized.
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