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Most laws would not work if they cannot punish people for breaking them. Liquid Network becomes more popular as people learn that BTC and USDT coins can be blacklisted and frozen on other chains.
There are few universal laws, the natural laws. If it doesn’t fall under natural law, as in this case, then it’s just a tool of state control.
The only network that matters is Bitcoin. Nothing can stop you from moving your coins there, whether onchain or ln. Liquid is shitcoin.
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