135 sats \ 4 replies \ @picco 9 Aug 2022 \ on: US Treasury Adds Ethereum Privacy Tool 'Tornado Cash' to Sanctions List bitcoin
This is just the beginning of an attack on privacy. We see that the USDC as centralized has to follow the sanction. BTC has the conjoin market, I don't know if they can do that on coinjoin?
I don't think they can do that against JoinMarket. But they could blacklist addresses that receive mixed coins (CoinJoin tx are very recognizable).
However, CoinSwap is being developed. This would be a way to unnoticeably swap your coins on-chain. CoinSwap tx would look just like regular tx.
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I think we can use Lightning to escape the blacklist of on-chain addresses. We can open a chanel and send btc through lightning or send on-chain btc to muun wallet and send out through lightning. Since the lightning receiver will not know the origin of the btc so the blacklist will not work.
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send out through lightning
In this case the provider will refuse to do submarine swap.
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IMHO, Tornado Cash was sanctioned not because of its tumbling function per-se, but because hacking groups were using it massively to launder eth or eth tokens. And again that was because most hacks were/are made in ethereum and eth-like shitty vulnerable protocols or bridges. Not to mention all those lending website disasters.
On a side note, since most protocol-level developments in Bitcoin are decentralized and carefully made/reviewed, I don't see that many hacks happening on btc.
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