jonwu.(🗽, 🍎) Profile picture
Sep 13 • 14 tweets • 3 min read
Are you going to jail for interacting with Tornado Cash?

Well, today we find out!

I read US Treasury's OFAC office Tornado Cash FAQ's so you don't have to:

(Note: I'm not a lawyer 🤠)
On getting money out of Tornado Cash:

You can do it!

...if you apply for an individual withdrawal license which includes furnishing provenance for your funds:

home.treasury.gov/policy-issues/…
On getting "dusted" by Tornado Cash-tarnished funds:

Technically you are still liable! And you still have to report all blocked funds to OFAC.

...but they won't delay processing your report of blocked property.
On using Tornado Cash at all:

No, absolutely not, nein, nyet, non.
On the mere mention of (whispers) *Tornado Cash* being a punishable thought crime:

It's not a thought crime!

You can:
- copy the code
- discuss it
- show it to others
- include it in written text
And...that's it.

What of course OFAC fails to address here is the sanctity of deployed Ethereum code as speech.
In other words, if I deploy credibly neutral technology that ends up being used by adversaries of the United States, OFAC is saying by omission that they can still levy sanctions.
Before you get mega upset, it's worth noting that the Office of Foreign Assets Control (OFAC) has a very specific purpose and mission:

To serve America's national security and foreign policy interests.

It's an intelligence agency, not a regulator.
In other words, OFAC doesn't know or need to know about Ethereum, consumer privacy, immutable contracts.

That's not its mandate.

It knows:

North Korea bad.

Tornado Cash seem help North Korea.

Tornado Cash bad.

Me do sanction.
It's sort of like the CIA seeing that North Korea used Tornado Cash, except instead of sending SEAL Team 6 to execute an extralegal assassination of the devs, it used its mandate to freeze assets in place.
So don't get it twisted:

OFAC is only here a regulator in the Warren G sense of the word--by depriving foreign adversaries of access to U.S. (and U.S. citizens') assets.

The history of OFAC as an intelligence agency is actually fascinating, but that's for another thread.
For the full list of Tornado Cash FAQ's see here:

home.treasury.gov/policy-issues/…
Follow me for more news to help relax your pucker and take you from 😖 to 😌

@jonwu_
this thread is for sure getting suppressed, he said to no one in particular

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More from @jonwu_

Sep 14
A lot has been written about the Ethereum merge but no one has really explained it the way your neighbor would.

So here's the merge as explained by a Brooklyn mechanic: Image
Eyyyyyy Jonny how yuse doin?

Siddown, siddown, have a bite o da sfogliatel'.

So I hear yuse is wantin to know about da Ethereum merge?

Look kid, da merge is like swappin' a big-💪-fuckin' V8 for a pansy Elon Musk fuckin' electric motor.
Ethereum's got two parts.

First: da part that change da numbers--

Dis is what all the eggheads call the "execution layer" (like dat means dick to me, ya know??)
Read 17 tweets
Sep 13
The Starbucks x Polygon loyalty announcement is so boring it's revolutionary.

A non-speculative, 1:1 drop-in replacement for typical loyalty programs.

That's exactly why it's a huge deal:
One of the biggest knocks against crypto is that nothing so speculative and ponzi-like could ever be a replacement for existing digital rails.

But that conflates activity with infrastructure.

The infrastructure enables many things--casino games among them.
But it also enables some pretty boring ass shit, like putting loyalty points on chain.

It's an idea so derivative if you saw the seed deck you'd probably pass.

"We're putting loyalty points on chain, bro, the TAM is huge bro"

-- guy who kicked you out of a frat party in 2012
Read 19 tweets
Jul 7
Today we launched Aztec Connect, the VPN for Ethereum.

I just used it to get some $stETH on mainnet Curve for $1.50 in fees, with complete privacy.

Fully private DeFi, with huge cost savings.

Why I think our private rollup is ridiculously bullish for Ethereum:
First, how does it work?

When you deposit to Aztec, you're transferring funds to an Aztec smart contract on Ethereum, which issues you an encrypted note within our system.

Think of this like a receipt for your deposit.
Then, when you want to do a DeFi transaction, you tell the Aztec Private Rollup to do what you want.

Like a VPN, it executes a @CurveFinance swap or an @element_fi vault entry and returns the result to the Aztec contract, without exposing your privacy.
Read 9 tweets
Jun 28
The EVM has won.

It's the dominant smart contract execution architecture, and Solidity is the dominant smart contracting language.

But how will Solidity devs choose between the 20+ major EVM implementations that are out there?
First, let's list them all out.

Ethereum ecosystem:

- Ethereum Mainnet
- Polygon Hermez
- Polygon Zero
- Polygon PoS
- Optimism
- Arbitrum
- Loopring
- zkSync
- Metis
- Scroll
- Boba
"Alt-L1s":

- BSC
- Fantom
- Harmony
- Avalanche
- Neon (Solana)
- Aurora (NEAR)
- Acala (Polkadot)
- Evmos (Cosmos)
- Moonbeam (Polkadot)
Read 14 tweets
Jun 24
Celsius. Babel. Voyager. BlockFi.

Centralized crypto fintechs are in deep trouble and rumored to be facing insolvency.

The former two froze user withdrawals.
The latter two received bailouts from FTX.

Why? What gives? What's going on?
First off: what are these things?

I've previously compared them to custodial asset managers or broker-dealers, but there's a much easier analogy at hand:

Banks.
How do banks work?

Roughly: they take customer deposits, and lend them out to borrowers.

(Side note: it's a little more nuanced than that if you want to learn more)

Read 25 tweets
Jun 13
Celsius is one of the largest centralized gateways to crypto.

It raised $864m of venture capital and at one point custodied over $3 billion of funds for 1m+ customers.

As of today, it appears insolvent, and it's taking the whole crypto market with it.

The Celsius Thread:

👇
For starters, Celsius is a do-it-all fintech app meant to give consumers easy, trusted access to crypto services:

- Trading
- High-yield deposits on stablecoins and cryptocurrency
- Crypto-backed lending
In essence, it's a custodial asset manager.

Take the traditional world of ETFs.

Vanguard and Fidelity wrap a basket of stocks into a retail-facing ETF and take a fee for rendering the service to investors.
Read 36 tweets

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