@L0laL33tz wrote a response to Amboss's OFAC compliance tool Reflex (which was announced in January I think, but made waves when they presented it at a recent conference).
I've quoted it in full below. Jestopher from Amboss responded on Twitter, and I've quoted that response after Lola's. You can find some good discussion on the linked Twitter thread. What are your thoughts?
Let‘s talk about @ambosstech‘s new product „Reflex“ and why you should close all channels to Amboss immediately.
Reflex is a product bringing OFAC compliance to LN Nodes, yet the product is advertised as increasing „Freedom“ for node runners - and freedom, according to Amboss, apparently means compliance with some of the most unjust, racist regulations existing in the world today.
OFAC enforces trade sanctions based on US foreign policy and national security interests. These include financially interacting with any individuals from countries such as Russia, Iran, Cuba, Venezuela, or Syria.
OFAC discriminates, based on country of birth, residency, and citizenship, against some of the most vulnerable people around the world. For years, particularly people of middle eastern descent have been subject to no-notice account freezes and account closures, if they are even able to open a bank account at all - all thanks to OFAC.
OFAC, first and foremost, targets the little people. Those in big business, from oil traders to weapons manufacturers to heads of state, have little issues transacting their money through the traditional financial system even with OFAC sanctions in place - while the big banks facilitating those transactions will get no more than a slap on the wrist.
OFACs strategy is simple: cut off entire populations from the global financial system, and with this from accessing basic needs, and hope for a revolte within the country OFAC is targeting. The US has long been the world‘s biggest bully, and OFAC is its favorite enforcement arm. Now, amboss is attempting to turn you into accomplices for profit.
From a human rights perspective, this should simply be unacceptable. Bitcoin has been a lifeline for many subject to OFACs racist, discriminatory policies. Especially for smaller payments, such as remittances, LN is vital, and often the only way for individuals to support their families in oppressive regimes; not to mention the use of btc for NGOs cut off from fundraising.
Most importantly, even when running a routing node, you have no obligations to comply with OFAC at all, as your service to the network is non-custodial (although this changes when you begin charging routing fees).
Amboss yet seems determined to unbank the Bitcoin banked for their own financial gain, and is selling it to you, LN users, as a convenience product to advert „the death of bitcoin through compliance“ - because if only you adhere to OFACs policies marginalizing the few will you decrease your own risk of getting debanked. Freedom for me, not freedom for thee.
Amboss‘ OFAC moneygrab should be unacceptable for anyone that actually cares about freedom - freedom for those who think, speak, look, live differently; for those we may not agree with or understand; for those who may one day have to protect our freedoms, just as it is our responsibility to protect their freedoms today.
But the Lightning Network is still young, and we should not let ourselves be bullied into racist and for most node runners quite frankly completely unnecessary policies by greedy assholes trying to make a big buck off of others misfortunes. Lets do what‘s always worked: boycott.
If you believe for bitcoin to be freedom money, and want it to remain an important tool for human rights, close all channels to amboss nodes and stop using their services immediately. Speak out against their company and products. Tell your friends to close channels to amboss, tell your friends to tell their friends, you know how this works.
Mentioning the need for more privacy and surveillance resistance in bitcoin, while simultaneously building the premier surveillance service for the Lightning Network in existence today, really is a mouthful.
Freedom of transaction is a human right, not a marketing phrase to sell your shitty products on in a powerpoint. I have always boycotted Amboss, and I hope now that the company is showing its true colors more will do the same.
Jestopher's response:
Reflex is a product for regulated businesses that must comply with one regulation or another, not node runners in general. Our operations software at @ambosstech is not meant to endorse any regulation; we'd prefer that it didn't exist.
FUCK AMBOSS ! FUCK THE GOVS ! I WILL NEVER COMPLY ! BITCOIN OR DEATH ! FIAT DELENDA EST!
I MEAN IT, THIS IS NOT A JOKE. I am willing to die but not comply.
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At the end of the day, this is actually a discussion about how best to achieve our ends.
For me, the goal is to remove power from the state and return freedom to individuals.
But how best to get there?
I am not convinced that do not comply gets us there. I've been a zealot before and it has only ever been ineffective.
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For me, the goal is to remove power from the state and return freedom to individuals.
how many times I have to repeat this meme?
How many times I have to repost this guide? https://darth-coin.github.io/general/natural-law-bitcoin-en.html
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Yes, I'm glad you posted that again. I hadn't seen it before. (This may come as a surprise to you, but you write a lot and I haven't yet had time to read your whole body of work).
I think of it as the barbarian (as in Conan) way of life. Which is very good. Emphasis on personal responsibility. Emphasis on individuality and independence. Maybe the biggest difference is that Conan aims to conquer while your Star Wars ethos is about rebellion.
I'm going to noodle on this and read some of the links in your piece. Then maybe we can have a Conan vs Vader duel.
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Many here still do not understand my "SW ethos"... All Darth ethos are not to conquer or rebellion. Is about balance into The Force.
I always recommend to all, to rewatch the whole SW saga, but focusing only on what Darth is saying and doing. is all about to bring balance into the force.
Balance means peace and prosperity. How to achieve that? With Natural Law.
I choose the nym "DarthCoin" to bring that balance into Bitcoin and put all bitcoiners on the right path. Many will consider me a lunatic, I don't fucking care, but I know what am I doing.
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Have you ever written an analysis of star wars or a piece about Vader's philosophy in it? I'd definitely be interested in reading that.
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good idea...
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This is pretty good.
You should consider writing a spin-off novel fleshing out your theories about Vader and his goal of bringing balance. It makes Vader an incredibly compelling figure (using both the Jedi and the sith to attain his ends).
Pass your own laws and enforce them. Look at government company laws as having the same legitimacy as McLaws.
Enough people are under the illusion that government is more legitimate than McDonald's that it is not useful to simply disregard the illusion.
It's like the Matrix. Yes, there is a more real world outside the matrix. But when you go into it, you can only bend the rules so far. This is a helpful piece if knowledge. Sometimes we have to operate within the Matrix and we are more effective if we know how far to bend the rules and where to stop.
What was warning/ saying Darth on 25 Feb 2024? #438438
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Do you think someone can run a serious business that provides lightning services and ignores the state?
Or is your advice not to run a business that provides such services?
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When people will start saying "enough is enough" ? Is it so hard to say "I do not comply" ?
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thank you
this is why we need assholes
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0 sats \ 1 reply \ @ek 4 Apr
When people will start saying "enough is enough" ?
When you stop dodging questions
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When people will stop being pussies?
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It seems like the compliance vulnerability to Lightning is becoming manifest.
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Compliance Is Defiance®
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My own views: the fact is that the US (or any government) can attach penalties to receiving bitcoin from specific addresses.
Until Bitcoin increases privacy protections (either through tech, or much more widespread use of coinjoins) it seems likely that merchants and service providers will be vulnerable to state attacks (ie: you received bitcoin from a sanctioned address, you go to jail).
It is unreasonable to expect businesses offering services in the space to expose themselves to punishment. Unless they are running completely under the radar, the government clearly knows where to find them.
So I think boycotting a business that builds something like Amboss built is too strong a reaction.
It's shitty, but I don't think any serious company can operate with fuck-the-state ideals.
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117 sats \ 3 replies \ @ek 4 Apr
I think there is a difference between complying and building a product that helps with compliance.
Someone will do it, sure, but do you have to be the one?
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Right. Kind of the Samurai v Wasabi debate.
The principled company doesn't build compliance tools and just sticks with offering services that don't help gov'ts do bad things.
Our question here isn't whether they can or should build the product. Our question is what do we do in response? The twitter post recommends closing all channels with Amboss (which is a very muscular form of boycott I think).
Short if that we can condemn them online and get up enough backlash that maybe they stop offering the service. But still use their services.
Are there any other options?
(Maybe the other conversation I veered into with Darth here was how bitcoin as a whole should behave toward the state.)
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Yeah that wouldn't be me.
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Compliance Is Defiance®
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Boycott is the only way to extirpate a disease. The disease, the cancer is the ones that only want to comply with gov rules.
When the solution is so simple: DO NOT COMPLY. Who the fuck is this gov to impose rules over my own money? Nobody is asking this simple question.
This is Amboss now...
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Let's play this out: if you are a bitcoin business that follows the do not comply path.
I imagine you get fined.
Now, you can choose not to pay the fine, but then I imagine you go to jail.
They can put you in jail because you have a bank account and your business pays taxes. So they know where you live.
Maybe we should say to the business, you weren't cypherpunk enough. Don't have bank accounts. Don't pay taxes. But then I think we have just given them many more hurdles and starting a business is hard enough.
It seems to me that all we end with is all the good people quiting and giving up because they can't out compete the shitty people.
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I imagine you go to jail.
so people pay fines only because are threaten. Is it not this plain robbery? You can easily won in any court.
So you prefer to just obey and say nothing... yeah but you want "freedom" with Bitcoin. I have news for you... until people will not realize that by simply saying "I do not comply" and fuck off the gov, Bitcoin will be totally useless, in a compliant environment.
Let's stop this whole bullshit with "if you do not pay taxes you go to jail". IS A TOTAL BULLSHIT TO SCARE BRAIN DEAD NPCS.
I am fucking tired of people defending the government, meanwhile they cry that are not "free"... FFS, not just say "fuck the gov"... DO IT!
I see only pussies and cowards everywhere, without balls... IT IS BITCOIN OR NOTHING !
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Perhaps you are right. I fear I am so much an NPC that I am not willing to risk finding out whether you are right though.
My past experiences with disagreements with the government are that you end up getting screwed and it doesn't change a thing for the better.
But aside from this: businesses are a great model for channeling resources into building a thing. If people follow your advice here, I don't see how they run a successful business.
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You fear because you didn't paid attention to all my SN posts for the last 3 years now.... I posted so many material how to fight the gov and howto make it OBSOLETE.
But yeah, people do not want to listen me. They only want to ridicule me, yeah I am the crazy one, saying bullshit.
I am the one that challenged a whole gov in court and I won! How ? I rebut any of their claim of authority over me, with a simple question.
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I had not read about your successful court challenge.
I know people who refuse to pay US income tax because they claim it is unconstitutional. It's a giant headache for them. And sure they aren't in jail, but they spend so much of their time dealing with the mess it creates.
I still maintain such a stance is a nonstarter for a business.
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I posted this link over hundred of times on SN.... It explain so easy how to rebut the IRS https://www.losthorizons.com/BulletinBoard.htm
I still maintain such a stance is a nonstarter for a business.
That is exactly what govs want: obedient slaves. Nobody should dare to challenge them. Just obey. But yeah... we want freedom ! Fuck freedom, let's be obedient instead.