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Sanctions on Tornado Cash, Who's Next? by idiosyncratic1

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hive-167922 · @idiosyncratic1 ·
$20.75
Sanctions on Tornado Cash, Who's Next?
Tornado Cash, the protocol that enable crypto people to initiate private transactions, was banned by US Treasury. The reason why it happened is "*to reduce illicit money laundering by bad actors*" as [CNBC News ](https://www.cnbc.com/video/2022/08/08/how-tornado-cash-blacklist-by-us-treasury-affects-wider-crypto-ecosystem.html) mentioned. Welcome to **the first sanction on a De-Fi protocol**!

![sanctions tornado cash ethereum.jpg](https://images.hive.blog/DQmVTsHRQxgHHLwrRAAk2N91ypJX1vgoexHJYngBnZufR9i/sanctions%20tornado%20cash%20ethereum.jpg)

Crypto ecosystem did not appreciate this move by the **Treasury**. Even, it led to some rumors that the next target of Treasury may be either the decentralized exchanges like Uniswap or the stablecoins that are created by smart contracts rather than some centralized issuers. 

### After the Treasury, USDC & Github Took Actions

When the news was declared, I thought that many crypto users can **eliminate** the frontend restriction and initiate transactions via smart contracts.

Then, we got the news. There are some ETH wallet addresses that are associated with Tornado Cash. **BLACKLISTED!**


Blacklisted ETH adressses, a.k.a, death list: [Treasury Gov.](https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808)

![image.png](https://images.hive.blog/DQmW4bZZmvxCCAtX4ChSrtFwGEys5Q7SnrfVdQZErjn1aiD/image.png)

When the list was shared, I thought that some **regulation-friendly** projects will jump into it. BOOM, USDC was the early bird to restrict the access to these smart contract addresses by people via blacklisting!

**Result**: The funds are frozen 🥶 

Question: Is USDC the Black Swan in crypto?

If you do not trust centralized stablecoins, you have several options in crypto market. Though USDC and USDT are leading the stablecoin market, you can easily find a decentralized stablecoin (like HBD in Hive) and use it. 

Yet, you cannot find another Github the moment you wish for it!

### Github Failed, as well.
Github is an amazing place to build software and check open source projects. Though there are several stablecoins, there is only one Github.

Unfortunately, [Github suspended the accounts of contributors of Tornado Cash.](https://blockworks.co/treasurys-tornado-cash-sanctions-have-companies-stepping-back-from-users/) Although repositories were removed, you can use **Waybackmachine** and reach them. Yet, it is not the problem.

**Problem**: Github is centralized.

As we witnessed today, centralized service providers cannot be trusted when there are some threats to crypto regulations. We need a decentralized (and popular) Github alternative asap.

### Sanctions, Exploits & Blacklists, De-Fi on target 
No doubt, We are on the right way! Building for a fair and better future should never be targeted by any parties. However, we will see immense attacks on the well-being of the De-Fi ecosystem, Bridges, and Layer 2 solutions.

The sanction on Tornado Cash made people wonder the question:
Which project will be the next victim? 
Uniswap? Algo-stablecoins? Centralized Exchanges? 

Today was a disappointing day for crypto people. We admitted that **Github** is untrustworthy and **USDC** can sacrifice anyone for the sake of regulation. The solution is hidden under these problems: **Decentralization**!


Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@idiosyncratic1/sanctions-on-tornado-cash-who-s-next)
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@ecency · 
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@jerrythefarmer ·
$0.03
RE: Sanctions on Tornado Cash, Who's Next?
The myth about decentralization that is fed to the masses is slowly starting to shatter. It is insane how reliable most "decentralized" protocols and chains are to centralized services.

I just hope people seeing Circle's ability to essentially freeze your smart contracts will wake people up. It's about time we start ditching the copycats and start looking for truly decentralized tech.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@jerrythefarmer/re-idiosyncratic1-75bzlu)
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@idiosyncratic1 · 
Since the beginning, I always had some positive thoughts about USDC and Circle company. However, this case is a red flag for it :I
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@poshtoken ·
$0.12
https://twitter.com/idiosyncratic1_/status/1556789037578477575
<sub> The rewards earned on this comment will go directly to the people( @idiosyncratic1 ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.</sub>
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@taskmaster4450le ·
$0.04
RE: Sanctions on Tornado Cash, Who's Next?
[Hive](https://leofinance.io/@crypto-guides/what-is-hive-crypto-hive).  Not!!

It is great to be on a [blockchain](https://leofinance.io/@leoglossary/blockchain) that is outside the reach of all that.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@taskmaster4450le/re-idiosyncratic1-4xqfrb)
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@zealous4ever ·
$0.03
How are we sure that the SEC will not tamper with HBD?
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@idiosyncratic1 · 
We cannot be sure about any decision of SEC. 

For now, privacy protocols and some CEXs are under the regulators' radar.
Hard to guess the next lucky ones 😉
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@zealous4ever · 
Oh, such a terrible year for  crypto.
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@jerrythefarmer ·
RE: RE: Sanctions on Tornado Cash, Who's Next?
Who would they contact to suspend usage of HBD or make any changes to it whatsoever? There is no CEO of Hive and no one can make that decision if the community is against it.

I guess the worst they can do is outlaw it.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@jerrythefarmer/re-zealous4ever-5khic4)
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@zealous4ever · 
Yes, I know HBD is decentralized, but they could outlaw it s you rightly mentioned. Hopefully it will not get to that extent. And maybe they might not even notice hive.
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@zestimony ·
$0.03
The truth is that centralized systems are the sweet spots for the government and regulators. Through them, they can influence to a great degree the activities of people within and outside there purview. Thankfully, Hive is resistance to such regulations!
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@idiosyncratic1 · (edited)
Hive is the safe harbour once again ✌🏼
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