I just heard the news about Tornado Cash, the sanction, and the arrest of a suspected Tornado Cash developer. It made the point of my debate in the topic. I believe nopara37 knew something like this would happen, and therefore accepted the trade-off of blocking UTXOs from illegal activities. From his point of view, he probably thinks that he made the right decision to protect himself, Wasabi, and its users.
Good luck with that:
Tornado Cash Adds Chainalysis Tool for Blocking OFAC-Sanctioned Wallets From Dapp
The blockade only applies to the Tornado Cash front end, not the underlying smart contract, one of the protocol's founders later tweeted.
But is the blocking of "OFAC-Sanctioned Wallets" also just for the front end in WasabiWallet? I believe it's not, nopara37 has made the decision to block all UTXOs used for "illegal transactions" to enter Wasabi's actual pool.
I just heard the news about Tornado Cash, the sanction, and the arrest of a suspected Tornado Cash developer. It made the point of my debate in the topic. I believe nopara37 knew something like this would happen, and therefore accepted the trade-off of blocking UTXOs from illegal activities. From his point of view, he probably thinks that he made the right decision to protect himself, Wasabi, and its users.
Just wondering, what kind of protection user get from blacklist during CoinJoin?
For those providing liquidity, it protects their Bitcoins. For users, it's the assurance than none of the UTXOs are "tainted", whatever that means for the government. It's trade off if you want to use Wasabi, or if you don't, you can use ChipMixer.