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TarasBob | 3 years ago

Let's say you're a business that accepts crypto and what if someone sends you ETH or some coins like USDC. Is it your job to check that these coins didn't come from Tornado? It's quite hard to do that. What if account A got their ETH from Tornado, then sent it to account B, which then exchanged the ETH to USDC on Uniswap, which then sent the USDC to account C, which then sent the USDC to you.

This is a problem for Bitcoin as well. What if someone got ETH from Tornado. Then converted the ETH to renBTC (https://renproject.io/) on Uniswap. Then converted the renBTC to BTC. Are those Bitcoins now somehow tainted?

This new law makes crypto essentially unusable (at least for US persons).

discuss

nl|3 years ago

This has been the case for a long time, especially on BTC.

There are APIs for companies that do this taint tracking for you, eg: https://bitquery.io/products/coinpath, https://www.chainalysis.com/chainalysis-kyt/, etc

paulpauper|3 years ago

Are those Bitcoins now somehow tainted?

Possibly. It depends on who the recipient is. Coinbase may not want the coins but others will not care.