Kraken CEO Jesse Powell said he found the Tornado Cash sanctions unconstitutional. In addition, he emphasized that he thought this event came as a reflex after the collapse of Terra.
Powell described the US government’s ban on Tornado Cash, which serves as a mixer for crypto transactions, as “unconstitutional”. Tornado Cash sanction began to be implemented not only in the USA, but also in many companies and projects.
US Treasury Department Considers $7 Billion Laundered With Tornado Cash
The U.S. Treasury Department said in recent weeks that action has been taken because it believes criminals have used Tornado Cash to launder more than $7 billion worth of cryptocurrencies since its release in 2019. Although the total amount of funds passed through Tornado Cash is $ 7 billion, the money thought to be laundered is said to be $ 1.5 billion. According to blockchain detectives Elliptic, only $1.5 billion of the $7 billion in transaction volume made through Tornado Cash is unfair.
Powell described the Tornado Cash ban as a sudden response to the May collapse of the Terra ecosystem, and said that removing Tornado’s source code from Github, where it was originally hosted, was also pretty unnecessary.
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