September 27, 2023

TV personality Kevin O'Leary backs Tornado Cash sanctions

TV personality Kevin O'Leary backs Tornado Cash sanctions

Kevin O'Leary, an investor and star of the TV show Shark Tank, in an interview with Crypto Banter, stated the need regulation of cryptocurrency mixers like Tornado Cash.

In his opinion, such applications prevent a significant influx of institutional funds into the digital asset industry.

O'Leary spoke out against the "crypto cowboys" in the industry. He believes it needs a "rules-based environment" that will root out projects like Tornado Cash.

“I think we are approaching that stage. […] I want to participate in a regulated area where we can put billions of dollars into work,” the investor added.

According to O’Leary, the crypto industry “will have to sacrifice” the arrested Tornado Cash developer for “some stability.” According to media reports, he is the co-founder of the service Alexey Pertsev.

Many industry representatives did not agree with the position of the TV star. Among them is the head of the bitcoin exchange Coinbase, Brian Armstrong.

“Technology sanctioning (as opposed toperson or entity) strikes me as a bad precedent. This should probably be challenged. Could have many unforeseen consequences later on,” he explained.

Armstrong also added that the trading platform under his leadership will always follow the law.

Read about what Tornado Cash is and how it works in ForkLog educational cards.

Recall that on August 8, the US authorities introducedsanctions list mixer website, as well as associated cryptocurrency addresses. At least $7 billion has passed through Tornado Cash since 2019, according to OFAC.

Circle subsequently blacklisted the service's USDC wallet addresses following sanctions. Infura and Alchemy infrastructure platforms have limited RPC requests to Tornado Cash.

Decentralized derivatives exchange dYdX has suspended the accounts of users who previously interacted with the mixing service.

After entering the US sanctions list, Tornado Cash's assets decreased by 15%.

Tornado DAO members called on the community to hire a team of lawyers to challenge the sanctions in court.

Read ForkLog bitcoin news in our Telegram - cryptocurrency news, courses and analytics.