Kraken CEO Disagrees With Tornado’s Cash Sanctions

In an interview, Kraken CEO Jesse Powell considered the recent US sanctions on the Tornado Cash coin mixer an overreaction. However, Kraken remains compliant and will block transactions involving Tornado Cash addresses.

In an interview with Bloomberg TV today (Asian time), Kraken CEO Jesse Powell expressed disapproval of US sanctions on Tornado Cash because he thought it was outrageous. He suggested that Tornado Cash has legitimate uses and that users have a right to privacy.

“People have a right to financial privacy,(…). We’ll see if it survives a challenge”

He said

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

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.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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