Are the developers of the DeFi code protected or unprotected - this is a question we, as users, cannot influence. Is the code or project used for criminal activity? Should the developer be held responsible - this question is currently being raised.
What do we care about this?
Let's take Tornado Cash as an example - a DeFi project developed to create anonymity for transactions. The idea is great: you send coins to the Tornado mixer, where they are mixed with coins from other users. Then you transfer from there to the desired address. And that's it - the transaction and the source of funds cannot be traced.
The project became successful, the TORN token was listed on Binance.
Very soon the Tornado mixer began to be used for money laundering, and in huge volumes. This attracted the attention of the authorities. Result: the project is blacklisted, blocked, developers arrested, TORN price dropped by 98%, delisted from Binance, users' funds on the project blocked.
What conclusion can be drawn:
The legal risks of projects affect ordinary users.
Smaller projects are more risky. They are more closed, often the team is unknown, financial information is not disclosed.
Did you choose such a project for investment? Invest only what you are willing to lose. This rule works 200% here.
Constantly monitor the price and news about the project to withdraw your money in time.
Or better: do not choose such projects. If your strategy is not 'take a big risk and become a millionaire', but 'learn, work, and earn well on a regular basis' - choose not new, well-known projects with transparent reporting, non-anonymous teams, preferably large ones.
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