Tornado Cash Challenges US Sanctions After Developer Arrested

One Tornado Cash DAO member has called for the community to hire a legal team to fight the US sanctions. According to the proponent, if this counter is successful, it will set a precedent for crypto privacy.

Tornado Cash seeks to fight US sanctions

According to The Block, Tornado DAO members are currently discussing how the community can challenge recent sanctions imposed by the US Department of Treasury on Tornado Cash. This happened when a Tornado Cash developer was arrested today in Amsterdam.

The Tornado DAO is the decentralized autonomous organization that manages the protocol’s treasury. It has more than 9,000 members according to data from DeepDAO but only 163 members are actively involved in its governance activities according to SnapShot data.

The proponent claims that if the sanctions are successfully overturned, it might serve as a model for future cryptocurrency privacy products like Tornado Cash. Although cryptocurrency users are dubious of governmental protocols, the idea urged the DAO to take advantage of the US legal framework.

Another member of the community recommended that any on-chain legal defense fund should be managed by the DAO’s governance. Additionally, it was suggested that the DAO conduct an on-chain vote to choose a qualified law office to represent the community in court.

However, several commenters to the proposal have expressed uncertainty about this strategy. MakerDAO delegate Chris Blec claimed that since there is no formal organization called “Tornado Cash,” gathering cash under such a banner for legal defense might “open up a whole new can of worms that is misleading and dangerous.” Tornado Cash, according to Blec, is simply computer code, and the best course of action is to defend each person’s right to privacy.

As updated in Coincu News article, data from The Block Research, since the ban was announced, only $6 million has been deposited into the protocol, down 78.5% from last week.

Users rushed to withdraw, increasing overall trading volume. There was $62 million withdrawn from the protocol, a 15% reduction in the amount of cryptocurrency stored in wallet addresses; $14.7 million was withdrawn in the first three hours alone.

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