You would be technically correct, but "they" didn't care about that when "they" sanctioned Tornado Cash.
I'm more than that: There's absolutely no sign from governments and AML services that a Wasabi CoinJoin is the holly grail of bitcoin outputs. Just because they've hired
one chain analysis company to tell them which outputs they've analyzed completely shadily and non-transparently, and have reached the conclusion that are likely, according to their undisclosed measures, to be suspicious,
it doesn't mean the rest of the world thinks likewise.
That's not the point, because it's all not about you, or what you believe, or all about the rest of the world. It's also about "them", and "their" policies. WasabiWallet merely took the decision to block "illegal transactions" as a preventive measure.
What would happen to all of those outputs that went through Tornado Cash?
I honestly don't know how it works,
It's a mixer.
don't know how reliable that was,
Probably reliable enough.
and neither how they identified that the outputs come from Tornado Cash. I have never used Ethereum.
Let's assume they can, and will. What would happen to all of those outputs that went to a sanctioned mixer?
WasabiWallet took the decision to block outputs used in "illegal transactions" as defined by "them", as a way to avoid "them" from sanctioning Wasabi.
I'm afraid they'll just block
lots of transactions, some of which are going to be "illegal", and leave it there. You can't know for sure they've avoided sanctioning,
but they're doing fine so far by bootlicking the authorities' beloved analysis company.
If you were nopara37, what decision would you make, that you believe, would be best for yourself, WasabiWallet, and its users?
I have my answer, I would like to hear your first.