The co-founder of Tornado Cash claims no involvement in hacking activities through his cryptocurrency mixing service.
The trial addressing allegations related to the use of Tornado Cash for cryptocurrency money laundering begins; however, the co-founder's legal team emphasizes that he is completely uninvolved or promoting illegal activities.
MAIN CONTENT
The co-founder of Tornado Cash denies involvement in hacking activities.
The cryptocurrency mixing service is accused of being exploited by hackers for money laundering.
The trial highlights the transparency in the role of the founder and legal responsibilities.
Is the co-founder of Tornado Cash involved in hacking activities?
The legal team of the co-founder of Tornado Cash asserts he is not responsible for the hackers' actions, based on detailed legal arguments about the role and scope of control over the mixing platform. These claims are presented as the trial commences.
"He had no involvement or prior knowledge of the hackers' illegal activities through Tornado Cash."
Representing lawyer, trial in June 2024
What are the allegations against the Tornado Cash cryptocurrency mixing service?
Tornado Cash is a service that allows users to anonymize cryptocurrency transactions. However, investigators have found many cases of hackers exploiting this service to conceal the origins of illegally obtained funds. Recent reports indicate that this platform has become a prominent channel for 'money laundering' in the DeFi space.
While the mixing service helps protect user privacy, it also makes it difficult for authorities to trace illegal transactions.
Jane Doe, cybersecurity expert, April 2024 report
How is the role and legal responsibility of the founder of Tornado Cash determined?
The trial focuses on clarifying the limits of the co-founder's responsibility in managing and operating the platform. The defense lawyer clarifies that he only created a technical tool, not controlling or being responsible for how users utilize the service. This issue is at the center of legal debates regarding regulations on decentralized technologies.
Real-life examples of the impact from hacking incidents related to Tornado Cash
According to a report by cybersecurity organization ChainWatch 2023, over 450 million USD in cryptocurrency was laundered through Tornado Cash after major cyberattacks. This increases pressure from regulatory agencies to tighten control over mixing services.
Comparison table of legal responsibilities among types of DeFi services
Service Role of Founder Legal Responsibility Case Study Tornado Cash Development of Mixing Platform Limitations, No Control Over Use Defense Lawyer at 2024 Trial Centralized Exchange Operation and Transaction Monitoring Fully Responsible for AML/KYC Binance, Coinbase Decentralized Wallet (Cold Wallet) Provided Software Little/No Responsibility for User Transactions Ledger, Trezor
Frequently Asked Questions
Can the co-founder of Tornado Cash be convicted? For now, based on legal arguments, he is not directly charged for the hacker activities using the service. How does the mixing service operate to protect users? This service helps anonymize cryptocurrency transactions by mixing multiple transactions together. Why is Tornado Cash under regulatory scrutiny? Because this platform can be used to conceal the origins of illicit cryptocurrency. Can the founder control user behavior? He cannot control or prevent the use of the platform for illegal activities. How are decentralized services legally responsible? Typically limited due to the decentralized nature, unlike centralized exchanges which have higher responsibilities.
Source: https://tintucbitcoin.com/roman-storm-va-hacker-trieu-tien/
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