During a dispute about the U.S. Treasury Department’s prohibition on crypto mixers, the creator of Ethereum said that he utilised the service to safeguard receivers.
Buterin’s remarks came in response to a tweet from Counterfactual cofounder Jeff Coleman, who said that such a gift is “a terrific illustration of a real demand for financial privacy” that Tornado Cash might support.
“Even if your government is fully supportive, you may not want the Russian government to know every aspect of your conduct,” Coleman said.
Since its inception in 2019, the OFAC said that Tornado Cash had laundered more than $7 billion worth of cryptocurrencies.
Crypto mixers are services that enable users to deposit cryptocurrency into a large pool and withdraw the same amount, less a charge, to several wallets to conceal the origin of the initial tokens.
Some, like the head of research at Coin Center, Peter Van Valkenburgh have gone so far as to deem the prohibition unlawful because not all monies that pass through the services are illegal.
Valkenburgh stated during a presentation at ZCON3 that prohibiting software publishing is a limitation on free expression and is thus unlawful, as does prohibit otherwise legitimate transactions conducted to safeguard one’s privacy for political objectives.
People in Russia and Ukraine resorted to cryptocurrencies as a store of value immediately after Russia’s invasion, when both nations’ currencies saw a considerable decline.
Activists and volunteer organisations in Ukraine have begun utilising cryptocurrencies to crowdsource contributions to help fund a defence against the Russian invasion, despite the country’s tight finances.
Recognizing bitcoin’s potential to aid Ukraine’s military and humanitarian endeavours, Ukrainian President Volodymyr Zelenskyy authorised cryptocurrencies in March.
Buterin said that he used the service to protect the beneficiaries, not himself, since Russia’s government was already aware of his stance on Ukraine.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.